24,000 More Scots Deemed Economically Inactive

Thousands more working age people in Scotland are economically inactive, with fewer people in work and an even bigger drop in those looking for work, official figures show.

The number of people aged 16 to 64 in employment fell by over 11,000 to 2.61 million in the three months to June compared with the previous quarter, according to the Office for National Statistics.

But the number of people registered as unemployed - those actively looking for work - fell by 13,000 to 155,000.

There were 24,000 more economically inactive people - such as the sick and disabled, those in early retirement, family carers and jobless students - rising to 731,000.

Figures for the full year show that employment in Scotland rose by 28,000, unemployment fell by 19,000 and economic inactivity fell by 6,000 since June 2014.

Average earnings fell slightly in the three months to June to £556 a week, but are 3.1% higher than June 2014 with Scotland the highest earning area of the UK outside London, the south east and east.

But the annual rise in men's earnings (4.1%) to £614 a week outstripped the rise in women's (1.1%) earnings to £474 a week, with men continuing to earn over a fifth more than women.

Scotland Office Minister Lord Andrew Dunlop said: Today's figures show unemployment falling and wages continuing to rise well above inflation.

This shows we are working to ensure everyone benefits from a growing economy as we build a country based on security and opportunity.

We will continue to help businesses create jobs and support those who want to work hard and get on. The introduction of our National Living Wage will ensure work pays for everyone across the country.''

Economically inactive people account for over a fifth of Scotland's working age population (21.4%), with workers comprising less than three quarters (74.1%) and little more than one in 20 (5.6%) registered unemployed.

The proportion of working people in Scotland is higher than the UK average (73.4%), with the same unemployment rate and a lower rate of economic activity than the UK as a whole (22.1%).

Scottish Liberal Democrat leader Willie Rennie said: The further reduction in unemployment is good news.

The Scottish Government must now work even harder to prevent the kinds of bumps in the road we have seen in previous months.

A recent poll showed that people had little confidence in the SNP's ability to manage the economy. It is now crunch time for our economy and we need a Government focussed fully on creating jobs and growth.

A continued steady improvement in Scotland's unemployment rate would give businesses the confidence they need to create more opportunity.''

Colin Borland, head of external affairs in Scotland at the Federation of Small Businesses, said: Scotland's army of small and medium sized enterprises sustain every second private sector job north of the border.

Falling joblessness is good news, but we need to get behind small business if we're going to create jobs for the 155,000 Scots still out of work.

Our evidence suggests that small business confidence is climbing, but to take advantage of this bullishness we need to make it as easy as possible for firms to achieve growth.

We need to see an extra push to ensure more Scottish public sector spending delivers for the smallest local Scottish businesses. And we need to redouble our efforts to make sure firms can hire people with the right skills and attitude.''

SNP MSP Gordon MacDonald said: These positive figures are very welcome and come after confirmation that the Scottish economy grew by 0.6% in the first quarter of the year.

The fall in unemployment of 13,000, compared to an increase across the UK, is the latest indication that the strong action taken by the SNP Scottish Government to get people into work and grow our economy is working.''