September Labour Market Statistics for Scotland

13 Sep 2006

Office for National Statistics (ONS) data released today show that there was no change in the level of unemployment in Scotland over the quarter. At 137,000 ILO unemployment is down 5,000 on the same point last year, and the unemployment rate of 5.3% remains near historical lows.

In the three months to July 2006, the number of people in work in Scotland was 2,460,000, which was down by 12,000 on the previous quarter. However, this figure remains 9,000 higher than it was during the same period last year. In addition the employment rate fell, but at 75.0% it remains above that of the UK average, and is higher than almost all other EU countries.

The number of people unemployed and claiming Jobseekers Allowance (JSA) in August 2006 fell by 400 to 88,200.  This represented an increase of 2,700 over the year, however the claimant count rate remains only slightly above the thirty year historical low at 3.3 per cent.

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

"These latest National Statistics show that the Scottish labour market continues to benefit from the economic stability delivered by this Government. The fall in employment is disappointing but it remains historically high.

"The prospects for the economy are good, and with policies that help those claiming lone parent and incapacity benefits back into work the Government remains fully committed to delivering progress towards our key aspiration of full employment."

Latest Data for Scotland

Employment
The Labour Force Survey (LFS) indicates that the number of people in employment in Scotland in May - July 2006 was 2,460,000.  Employment was 12,000 lower compared with the previous three months but 9,000 higher compared to the same period last year.  The employment rate amongst those of working age was down 0.6 percentage points over the quarter and down 0.1 percentage points over the year, to 75.0 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 saw no change over the quarter May - July 2006 and remained at 137,000.  The level was 5,000 lower compared to the same quarter last year.  The unemployment rate is unchanged over the quarter at 5.3 per cent, and down by 0.2 percentage points over the year.

Claimant Count Unemployment
The claimant count in Scotland, based on the seasonally adjusted number of people claiming Job Seeker's Allowance (JSA), fell by 400 in the month to August to 88,200.  The level was 2,700 higher than in August 2005.  The claimant count rate was unchanged over the month but has increased by 0.1 per cent over the year.

Economic Activity
The number of economically active (defined as those in employment or ILO unemployed, seasonally adjusted) in Scotland in the May - July 2006 quarter was 2,597,000.  This was  12,000 lower than the previous quarter, but 5,000 higher than at the same time in 2005.  Among those aged 16-59/64, the economic activity rate was 79.2 per cent - down 0.6 percentage points on the previous quarter, and down 0.3 percentage points for 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. May-July data should be compared with February-April 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, Travel to Work Areas (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/lmsscot0906.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.