Unemployment increases in Scotland as UK figure falls

Unemployment in Scotland has increased to 114,000 at the same time as the number of people in work across the country has fallen.

The number of Scots who were in work dropped by 21,000 over the period August to October, accounting for almost two fifths of the 56,000 decrease in employment experienced across the UK, official figures showed.

And while the latest data from the Office for National Statistics (ONS) revealed a fall in the jobless total across the UK, this rose by 8,000 north of the border over the three-month period.

There were 2,653,000 people in work across Scotland, giving the country an employment rate of 74.9% amongst the working age population.

The unemployment rate in Scotland rose to 4.1% - slightly lower than the UK rate of 4.3%

While the number of people in work is down on the previous quarter, the employment total is 59,000 higher than 12 months ago, and unemployment has fallen by 32,000 over the year.

Female unemployment fell from 47,000 to 39,000 over August to September, according to the data, but in contrast the number of men without a job went from 59,000 to 74,000.

The figures were released just over 24 hours before the Scottish Government publishes it Budget plans for 2018-19.

Stuart McIntyre, of the Fraser of Allander Institute economic think tank, said rising unemployment and a falling number of people in work would be `an unwelcome economic backdrop' to that.

But the expert said: `Today's rise needs to be put in the wider context of near-record levels of employment. And an unemployment rate of just 4.1% - even after today's rise - is remarkably low by historical standards.'

With small and medium sized enterprises key to Scotland's economy, the Federation of Small Businesses (FSB) said the headline jobs indicators are now moving in the wrong direction''.

Andy Wilcox, policy convener for the FSB in Scotland, added: `That's unsettling for policymakers and devastating for those without work.

`Tomorrow's Scottish Government budget is a key opportunity for ministers to set out their ambitions for the country.

`A majority of Scottish firms are against changes to income tax, but that doesn't mean there isn't action which Ministers could take to kick-start growth and help firms create jobs.'

Jamie Hepburn, the Scottish Government's Minster for Employability and Training, said: `While these latest figures show that employment is up by 1.7 percentage points over the year, it is disappointing to see a slight fall in employment and a slight rise in unemployment over the last quarter.'

He stressed Scotland's unemployment rate was lower than that for the UK, with 89,000 more people in work than there were at the pre-recession peak.

Mr Hepburn added: `The real risk to Scotland's economy comes from a hard Brexit. We are continuing to press for a less damaging approach to Brexit, which keeps the UK in the single market and customs union.'

But Scottish Secretary David Mundell said the increase in unemployment was disappointing', adding it served as areminder of how important it is that the Scottish Government uses its extensive new powers to tackle Scotland's economic challenges'.

The UK Government minister said: We have delivered on our commitment to make the Scottish Parliament more powerful and more accountable to people in Scotland.

`The Budget on Thursday is an opportunity for the Scottish Government to set out how it will use its new powers to drive economic growth.

`It is for Holyrood to decide how to use its new income tax powers, but I have been clear that making Scotland the highest taxed part of the UK would harm our economy, be bad for business and put jobs at risk.'