JANUARY LABOUR MARKET STATISTICS FOR SCOTLAND

18 Jan 2006

Labour market policies building on success 

New statistics released today show the Scottish labour market maintained a strong performance in the three months to November 2005. 

The number of people in work in Scotland has risen to a record high of 2,469,000 - up by 4,000 over the quarter and by 14,000 over the year.  

The Scottish employment rate of 75.5 per cent has not been higher since records began in 1992. It is above that of the UK and almost all other EU countries.

There was an increase of 7,000 over the quarter in the unemployment level but it has fallen by 5,000 since the same period in 2004.  At 138,000, or 5.3 per cent of the working age population, Scottish unemployment remains low by historical standards.  The quarterly increase is partly explained by a greater level of engagement in the labour market, with the economic activity level hitting a new high of 2,607,000.

Claimant count figures showed there were 2,200 fewer people out of work and claiming Jobseeker's Allowance in December than there were the previous year.  The claimant count rate remained at its lowest recorded level for over thirty years.

Commenting on the figures, Scotland Office Minister David Cairns said:

"These figures show employment at its highest ever level, with over 200,000 more people in work than there were nine years ago.  This is clear evidence that a strong economy and successful labour market policies like the New Deal have made a real difference for groups who previously lacked the help they needed to prosper in the labour market. 

"The fall in the economic inactivity rate means that since 1997 80,000 fewer people have been excluded from the labour market.  These people are now able to look for, and find, work.

"The Government wants to provide opportunity for all. This includes people facing the greatest barriers to finding work, such as lone parents, carers and those on incapacity benefit."

Latest Data for Scotland

Employment

The Labour Force Survey (LFS) for September to November 2005 indicates that the employment level in Scotland rose by 4,000 over the quarter to 2,469,000.  This was 14,000 higher than the equivalent period in 2004 and represents a new record high level. The employment rate for people of working age was 75.5 per cent, up by 0.1 percentage points over the quarter and by 0.3 percentage points over the year.

Unemployment

Unemployment in Scotland rose by 7,000 to 138,000 in the September to November 2005 compared with the previous quarter.  The unemployment rate was up by 0.2 percentage points to 5.3 per cent.  Compared with the same period in the previous year, unemployment was down by 5,000 and the unemployment rate fell by 0.2 percentage points.

Claimant Count Unemployment

The claimant count in Scotland, based on the seasonally adjusted number of people claiming Jobseeker's Allowance, fell by 200 between November and December to 85,500.  Compared to December 2004 the number of claimants was down 2,200.  The claimant count rate was 3.2 per cent, unchanged from November but down 0.2 percentage points over the year.

Economic Activity

The number of economically active (in employment or ILO unemployed, seasonally adjusted) in the three months to November 2005 was 2,607,000.  It is the highest economic activity level since records began in 1992.  This was up by 10,000 on the previous three-month period and by 9,000 over the year. Among those aged 16-59/64, the economic activity rate was 79.8 per cent, up by 0.3 percentage points on the previous quarter and by 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. September-November data should be compared with June-August 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 benefits 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:

http://www.statistics.gov.uk/pdfdir/lmsscot0106.pdf

Media unable to access the data in this way can phone the number at the end of the news release and have the pages faxed.

Contact: Catriona Ross, 0131 244 9052

News Release: SS0921