17 May 2006
Scottish labour market stays strong
New figures released today confirmed the continuing strength of the Scottish labour market despite a slight rise in unemployment.
In the three months to March 2006, the number of people in work in Scotland was 3,000 higher than it was at the same point last year. The new figures from the Office for National Statistics showed a quarterly fall in employment from the record high witnessed in the previous three months, to 2,464,000. The Scottish employment rate of 75.3 per cent remains above that of the UK and almost all other countries in the European Union.
ILO Unemployment in Scotland increased by 4,000 over the quarter to 139,000 - but remains 6,000 lower than at the same time in 2005. And at 5.3 per cent, the Scottish unemployment rate is around its lowest position on record.
The number of people unemployed and claiming Job Seekers Allowance (JSA) in Scotland increased marginally over the month and by 1,900 over the year. The annual change has moved the claimant count rate up so that it is now only slightly above the thirty-year historical low of 3.1 per cent.
Commenting on the figures, Scotland Office Minister David Cairns said:
"These figures show that Scotland continues to benefit from the economic stability delivered by this Government. Employment is higher than at the same time in 2005 and there are fewer people unemployed too.
"Whilst the slight increase in unemployment is disappointing, it has to be viewed in context. Since 1997, we have helped over 200,000 more people into work, unemployment has been cut by a third and there are 71,000 fewer people claiming Jobseekers Allowance. But we know that we must continue to use policies such as the New Deal and National Minimum Wage to ensure that as many Scots as possible are able to take advantage of the opportunities that being in work can bring."
Latest Data for Scotland
Employment
The Labour Force Survey (LFS) indicates that the number of people in employment in Scotland in January - March 2006 was 2,464,000. Employment was 4,000 lower compared with the previous three months but was still 3,000 higher compared to the same period last year. The employment rate amongst those of working age fell by 0.1 percentage point over the quarter and the year to 75.3 per cent. In international terms, the Scottish employment rate remains above the UK average and the corresponding rate for the majority of other EU countries.
Unemployment
ILO unemployment in Scotland rose by 4,000 over the quarter to January - March 2006 to 139,000. However, the level was 6,000 lower compared to the same quarter last year. The unemployment rate is 5.3 per cent, up by 0.1 percentage point over the quarter but down by 0.2 percentage points over the year. The Scottish unemployment rate is 0.1 percentage points higher than the UK rate but lower compared to almost all other countries in the EU.
Claimant Count Unemployment
The claimant count in Scotland, based on the seasonally adjusted number of people claiming Jobseeker's Allowance, rose by 500 in the month to April to 88,000. The level was also 1,900 higher compared to April 2005. The claimant count rate was unchanged over the month but has increased by 0.1 per cent over the year, to 3.3 per cent.
Economic Activity
The number of economically active (defined as those in employment or ILO unemployed, seasonally adjusted) in Scotland in the January - March 2006 quarter was 2,603,000. This was unchanged on the previous three months and 4,000 lower over the year. Among those aged 16-59/64, the economic activity rate was 79.6 per cent - down 0.3 percentage point over the year but unchanged from the previous quarter.
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. January-March data should be compared with October-December 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.
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/lmsscot04206.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.