JANUARY LABOUR MARKET STATISTICS FOR SCOTLAND

17 Jan 2007

Office for National Statistics (ONS) data released today show the highest number of people recorded in employment and the highest level of economic activity in Scotland since records began in 1992.

The number of people in employment in the three months to November 2006 reached a new high of 2,480,000 - up by 13,000 over the quarter and by 14,000 over the year.  The Scottish employment rate remains near the historic high at 75.3 per cent and continues to be above that of the UK and almost all countries within the EU.

Economic activity was up to 2,617,000, an increase of 25,000 on the previous 3 months, and 12,000 on the year. This is a new record high for the level of economic activity in the Scottish labour market.

On the ILO measure, unemployment in Scotland rose by 12,000 over the previous quarter to 137,000, however this is down by 2,000 on the same period a year ago.  The Scottish unemployment rate increased by 0.4 percentage points to 5.2%.

The claimant count measure (those people out of work and claiming Jobseeker's Allowance (JSA)) registers as 85,400 for December 2006.  This represents a fall of 900 over the month and no change over the year.  The claimant count rate remains close to the historical low at 3.2 per cent.

Commenting on the ONS figures, the Secretary of State for Scotland Douglas Alexander said:

"I welcome the increases in employment and economic activity, both of which have reached new record highs. The reported level of unemployment has to be seen in context of the current strength of the Scottish labour market. 

"This data shows that we cannot be complacent about the health of the Scottish labour market. To this end we must continue to support work schemes such as the New Deal to ensure that the prosperity can be shared by all."


Latest Data for Scotland

Employment
The Labour Force Survey (LFS) indicates that the number of people in employment in Scotland in September - November 2006 was 2,480,000.  Employment was 13,000 higher compared with the previous three months and 14,000 higher compared to the same period last year.  The employment rate amongst those of working age was up 0.3 percentage points over the quarter and down 0.2 percentage points over 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 was up by 12,000 over the quarter September - November 2006 to 137,000.  The level was 2,000 lower compared to the same quarter last year.  The unemployment rate increased 0.4 percentage points over the previous quarter at 5.2 per cent, and is down by 0.1 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 900 in the month of December to 85,400.  The level was the same as in December 2005.  The claimant count rate was unchanged over the month and year at 3.2%.

Economic Activity
The number of economically active (defined as those in employment or ILO unemployed, seasonally adjusted) in Scotland in the September - November 2006 quarter was 2,617,000.  This is 25,000 higher than the previous quarter, and 12,000 higher than at the same time in 2005.  Among those aged 16-59/64, the economic activity rate was 79.5 per cent - up by 0.6 percentage points on the previous quarter, and down 0.3 percentage points over the year.

NOTES FOR 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, 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. The ILO measure of unemployment defines unemployed people as those who are; without a job, want a job, have actively sought work in the last four weeks and are available to start work in the next two weeks or; out of work, have a found a job and are waiting to start in the next two months. The claimant count measures the number of people claiming Jobseeker's Allowance benefits. The claimant count measure is always the lower measure because some unemployed people are not entitled to claim benefits, or choose not to do so.

5. 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/lmsscot0107.pdf