21st July 2026
Every month we hear about unemployment figures, employment rates and the state of the UK jobs market.
Yet anyone running a business in Caithness may be left wondering whether the statisticians are describing the same country.
Nationally, unemployment has edged upwards over the past year and businesses across much of Britain are becoming more cautious about hiring.
So why do employers in Caithness still struggle to fill vacancies?
The answer lies in the unique nature of the Highland economy.
One Size Doesn't Fit All
The latest Office for National Statistics figures show unemployment in the UK at 4.9%.
Scotland remains close to that average, with unemployment at 4.7%.
Those numbers are useful, but they do not tell the whole story.
Labour markets work very differently in rural areas compared with large cities.
In London or Manchester, employers may receive dozens of applications for a vacancy.
In Caithness, businesses can advertise for weeks—or even months—without finding someone with the right skills.
It's Not Always About Unemployment
People often assume labour shortages mean there are plenty of unemployed people who simply do not want to work.
Reality is far more complicated.
Many vacancies require specialist skills that are in short supply.
Examples include:
Electricians
Engineers
Carpenters and joiners
Plumbers
HGV drivers
Healthcare staff
Care workers
Hospitality chefs
Skilled technicians
Someone looking for office work cannot simply step into a role maintaining wind turbines or servicing industrial equipment.
The Ageing Population
One of Caithness's biggest challenges is demographic change.
Like many rural areas, the population is getting older.
As experienced workers retire, fewer younger people are available to replace them.
This creates shortages even if overall employment remains relatively high.
An ageing population also increases demand for healthcare and social care workers—two sectors that already struggle to recruit.
Young People Leave
Many young people leave Caithness to attend university or college.
Some return.
Many build careers elsewhere.
This creates what economists call a "brain drain".
The area invests in young people through schools and colleges, but many of the skills they develop end up benefiting larger cities.
Housing Can Be a Bigger Problem Than Jobs
Even when employers find suitable candidates, another obstacle often appears.
Housing.
A shortage of affordable homes means people cannot always relocate for work.
This affects:
Teachers
NHS staff
Police officers
Engineers
Hospitality workers
Construction workers
The vacancy may exist.
The employee may want the job.
But finding somewhere affordable to live can become the biggest challenge.
Major Projects Compete for the Same Workers
Caithness has another unusual characteristic.
Large employers frequently recruit from the same limited workforce.
Projects linked to:
Dounreay decommissioning
Offshore wind developments
Harbour improvements
Construction
Energy infrastructure
all compete for engineers, electricians, project managers and skilled tradespeople.
When one employer offers higher wages, others often struggle to compete.
The result is not unemployment—it is labour competition.
Small Businesses Feel It Most
Large organisations can often attract workers by offering:
Higher salaries
Better pensions
More training
Greater job security
Small businesses rarely have those advantages.
Many local firms therefore face the greatest recruitment difficulties despite being the backbone of the local economy.
Payroll Numbers Tell Another Story
The latest HMRC payroll figures show employee numbers falling across almost every part of Britain.
That suggests employers are becoming more cautious.
But a slowdown in recruitment does not automatically solve labour shortages in rural Scotland.
If a business cannot recruit a qualified mechanic today, it is unlikely to find one simply because unemployment elsewhere has increased.
Skills shortages and unemployment are related—but they are not the same thing.
Looking Ahead
The Highlands are also entering a period of significant investment.
Renewable energy developments, electricity network upgrades, housing projects and continuing work at Dounreay all have the potential to increase demand for skilled workers over the next decade.
That presents both an opportunity and a challenge.
If enough local people can be trained and retained, the region could enjoy sustained economic growth.
If not, businesses may increasingly rely on attracting workers from elsewhere in Scotland, the UK and overseas.
The Bigger Picture
National employment figures make the headlines, but local realities often tell a different story.
For Caithness, the challenge is not simply creating jobs.
It is ensuring there are enough people, with the right skills, living in the right places to do them.
That means investment in housing, training, apprenticeships, transport and digital connectivity is just as important as investment in businesses themselves.
Britain's labour market may be cooling, but for many employers in Caithness the biggest challenge remains exactly the same as it has been for years—not finding work, but finding workers.