Unemployment edges upwards in Scotland

Unemployment in Scotland increased slightly during the last quarter amid signs of a cooling jobs market, according to official figures.

Between July and September this year, the unemployment rate among those aged 16 years and over was 3.5%, which was 0.3% up on the previous quarter.

Across the UK, the rate was 3.6%, up from 3.5% in the previous three months.

The Office for National Statistics data showed more people dropping out of the workforce.

There was a hike in the proportion of people neither looking for work nor working.

Figures also showed wages still lagging well behind the soaring cost of living.

Regular pay rose by 5.7% in the year to September, the fastest growth since 2000 excluding the pandemic, when people got big rises returning to work from furlough.

However, when adjusted for rising prices, wages fell by 2.7%.

In Scotland, the employment rate for those aged 16 to 64 years was 75.3% between July and September - 0.1% down on the previous quarter.

Meanwhile, the Scottish government said the employment rate for women in Scotland aged 16-64 was the highest since 1992, at 75.2%.

Prof Stuart McIntyre, from the Fraser of Allander economic institute, said it was clear that that the Scottish economy was "heading into an exceptionally challenging period".

He said: "One rising issue of concern in the Scottish labour market is the growing rate of economic inactivity amongst men, now at 21.1%, its highest rate since the current data series began in 1992.

"There are a number of reasons, both good and bad, for economic inactivity but a particularly worrying one at the moment is the rise in those who are economically inactive because of illness."

Scotland's employment minister Richard Lochhead said: "The Scottish labour market continues to show resilience in the face of ongoing challenges to the economy with marginal changes over the quarter to the employment, unemployment and inactivity rates.

"The ongoing cost of living crisis, along with the damaging effects of the UK government's recent mini-budget and the continuing adverse consequences of the UK government's Brexit policies, are impacting on Scotland's businesses and workforce."

The UK government's Scottish Secretary Alister Jack said the figures showed that Scotland's labour market "remains strong".

He added: "While the figures are encouraging, we appreciate the pressures on many families as we continue to face significant global economic challenges.

"That's why we have put in place measures to help - including through our energy support scheme and a £1,200 package of support for the most vulnerable."