October Labour Market Statistics for Scotland

12 Oct 2005

Scottish labour market hits new record levels

Figures released today show a record performance in the Scottish labour market, with the highest level of employment and lowest unemployment since quarterly statistics began in 1992.

The number of people in employment in Scotland has risen to a record high of 2,462,000 - up 7,000 over the recent quarter and 18,000 over the year.  At 75.5 per cent, the Scottish employment rate is also at its historic best and continues to exceed that of the UK and most other EU countries.

The increased levels of employment have been accompanied by significant falls in unemployment.  ILO unemployment in Scotland fell to a new record low of 131,000 - down 18,000 compared to the previous quarter and 17,000 over the year.  The ILO unemployment rate of 5.1 per cent also marks a new record low.

Commenting on the figures Scottish Secretary Alistair Darling said:

"This is very good news for Scotland. We now have the highest proportion of people in work and lowest number of people unemployed since quarterly records began.  There are over 200,000 more people in work than there were in 1997.   That is good for Scotland's families, and good for the country too.  It augurs well for continuing economic growth and increasing prosperity and opportunity. The policies of the Government and the Scottish Government are delivering for the people of Scotland."

Latest Data for Scotland

Employment
The Labour Force Survey (LFS) indicates that the number of people in employment in Scotland in June to August 2005 was 2,462,000.  Employment increased by 7,000 compared with the previous three months and by 18,000 compared to the same period in 2004. The employment rate amongst those of working age rose by 0.3 percentage points on the previous quarter to 75.5 per cent.  A rise of 0.5 percentage points was also recorded over the year and the Scottish employment rate remains above the UK and EU averages.


Unemployment
ILO unemployment in Scotland fell by 18,000 to 131,000 in June to August 2005 compared with the previous quarter, while the unemployment rate fell by 0.7 percentage points to 5.1 per cent.  Unemployment was 17,000 lower and the rate down 0.6 percentage points compared with the equivalent period in 2004.

Claimant Count Unemployment
The claimant count level in Scotland, based on the seasonally adjusted number of people out of work and claiming Jobseeker's Allowance, increased marginally for the second successive month in September.  The number of claimants was up by 500 compared to August but down by 5,200 compared to September 2004.  The claimant count rate was unchanged at 3.2 per cent.

Economic Activity
The number of economically active (in employment or ILO unemployed, seasonally adjusted) in June to August 2005 was 2,594,000.  A fall of 11,000 was recorded over the quarter although the figure was 2,000 higher over the year. Among those aged 16-59/64, the economic activity rate was 79.5 per cent, down 0.3 percentage points on the previous quarter and down 0.1 percentage point over the year.

NOTES FOR NEWS EDITORS

1. The internationally comparable International Labour Organisation (ILO) measure of unemployment is the headline figure published by the Office for National Statistics (ONS) for UK regions/countries.

2. The ILO measure of unemployment, which is derived from the Labour Force Survey (LFS), is published 12 times a year for an average of the three preceding consecutive months. ONS recommend that seasonally adjusted data should be compared with the previous non-overlapping three-month period: i.e. June-August data should be compared with March-May data. Quarter to quarter changes at country/regional level are especially subject to sampling variability and should be interpreted in the context of changes over several quarters.

3. The count of those claiming unemployment-related benefit continues to provide a full and timely range of data at sub-Scotland level for local authorities, TTWAs and parliamentary constituencies. The claimant count is also the main source of information on unemployment by age and duration. Data on the claimant count in the New Deal age and duration groups is available from 1985.

4. Economic activity is a measure of those who are in employment plus those who are unemployed but are available to enter the labour market (ILO unemployed).  Conversely, the economically inactive are those people who are not in employment, but do not fulfil all the ILO criteria to be classified as unemployed.  The most common reasons given for inactivity are being a student, being retired, looking after a family or home and being long-term sick or disabled.

5.  We have included a link to a PDF file which can be downloaded from the Office of National Statistics website at: