Unemployment in Scotland falls by 4,000

21st March 2013

Official statistics published today by ONS show that unemployment in Scotland fell by 4,000 over the three months to January 2013. Youth unemployment experienced the biggest fall in 20 years.

Scotland now has a lower headline (16+) unemployment rate and lower youth (16-24) unemployment rate than the UK as a whole.

The headline unemployment rate in Scotland now stands at 7.4 per cent, lower than the UK rate of 7.8 per cent. This is the fourth monthly release in a row that shows unemployment in Scotland falling and Scotland’s unemployment rate is now at its lowest in over three years.

The youth unemployment rate also fell to 17.0 per cent in Scotland compared to 20.6 per cent in the UK. The rate in Scotland has fallen by 7.7 percentage points over the year – the largest decrease since 1992. The youth employment rate now stands at 56.1 per cent, 5.3 percentage points higher than the rate across the UK.

The headline employment level in Scotland rose by 19,000 over the three months to January 2013 and the headline rate rose by 0.7 percentage points to 71.1 per cent.

Data on public sector employment released today showed a fall in public sector employment in the fourth quarter of 2012 has been accompanied by an increase in private sector employment of 15,100.

Finance Secretary John Swinney said:“These figures show a welcome improvement in the labour market in Scotland. Unemployment has fallen by 4,000 and youth unemployment has fallen by record levels. Our headline unemployment rate is now at its lowest level for over three years.

“Employment is on the increase and our employment rate is the fifth joint highest of the UK nations and regions.

“Scotland now has a lower headline unemployment rate and higher youth employment rate than the UK as a whole.

“The targeted action we have taken on youth unemployment, with investment in apprenticeships, full time college courses and Opportunities for All appears to be delivering real results. Youth unemployment has fallen at the fastest rate in over 20 years and our youth unemployment rate of 17.0 per cent is lower than the 20.6 per cent that is being seen in the UK as a whole.

“Despite these improvements more has to be done to strengthen the fragile recovery. We are continuing our programme of capital investment to boost our economy and jobs and we are maintaining the most competitive business environment in the UK.

“Today’s budget provides a real opportunity for the UK Government to change course and support economic growth, protect jobs and in turn rebuild public finances.

“With the powers of independence we would have the economic levers and the scope to do even more with Scotland’s interests making sure that we no longer have to fund the failures of a UK Government.”

Minister for Youth Employment Angela Constance, who is meeting some of Scotland’s largest employers in Edinburgh to discuss the employability of young people, said:

“Today’s figures are further evidence that Scotland is taking the right approach in supporting young people into employment. We have guaranteed every 16 to 19 year an offer of a place in education or training through Opportunities for All and are committed to 25,000 Modern Apprenticeships in every year of this Parliament. We will soon make available £25 million of Scottish Government and EU funding for recruitment incentives to encourage small and medium sized employers across Scotland to take on unemployed 16-24 year olds and key initiatives like Community Jobs Scotland are improving the employability of thousands of young people.

“Not only are the figures particularly striking, we must also remember that every additional young person in employment compared to this time last year represents a life transformed. We cannot underestimate the difference that being in employment, training or education will make to a young person. We have come far since my appointment in December 2011, but there must be no let up and throughout 2013 I will be asking employers to make young people their business. Today’s figures clearly show that many have already done so, but I want to see more and more businesses taking on young people to aid Scotland’s economic prosperity.”