John Swinney has blamed Brexit for causing a recruitment crisis in Scotland which he claims is impacting every sector of the economy.
The Deputy First Minister has this week announced another round of spending cuts as he tries to balance the Scottish Government books at a time of soaring inflation and huge pressure on the NHS.
The SNP veteran yesterday set out "savings" of £615 million as part of his emergency budget review - including £400 million of spending "reprioritisation" within the health and social care portfolio in order to support a pay offer for staff.
Swinney today claimed the stormy economic outlook was in part being caused by the UK's decision to leave the European Union and end the free movement of workers.
It comes as the head of a doctors' union had earlier this week warned that Scotland's NHS was in "a perilous situation" amid a staffing and funding crisis.
Appearing on BBC Radio Scotland, Swinney was today asked why his government was spending £100m on agency staff at a time of wider spending cuts, which opposition parties have said shows proof of "poor workplace planning".
"We've put a lot of effort to trying to maximise the availability of healthcare staff within the system," he said.
"One of the challenges we face is the availability of people to enter the labour market and enter the nursing profession.
"We are, for example, struggling to recruit in social care and nursing - to a significant extent because of the fall in the size of the working age population because of Brexit and the end of the free movement of people.
"That is a very hard, blunt reality that's affecting every aspect of the Scottish economy. Whether it's the health service, whether it's distribution, whether it's transport, whether it's agriculture, whether it's any aspect of our public services or private economy - we are struggling for employees.
"And that's a direct result of the folly of Brexit and the loss of free movement of individuals."
The acting finance secretary told MSPs yesterday that inflation meant the Scottish Government’s budget is now worth £1.7 billion less than when it was first published in December.
In the budget review document, £116 million of Covid-related costs was allocated for “reprioritisation” within the health and social care portfolio.
A further £70 million was identified from “social care and National Care Service reprofiling”, with £38 million earmarked from mental health funding.
Dr Ian Kennedy, head of the BMA in Scotland, had earlier warned of a recruitment crisis.
"The public need to see transparency on where the vacancies are. We think that there are probably 15 per cent vacancies across hospital consultant posts across Scotland," he said.
"Even the government admits to seven per cent and that we are at least 800 GPs short in Scotland - and I, and others, suspect we are probably well over that figure now."
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