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Daily Record
Daily Record
Politics
Chris McCall

Unemployment in Scotland rises despite businesses struggling to recruit staff

Scotland’s unemployment rate has risen slightly in the last quarter despite some businesses still struggling to recruit staff.

ONS data published today showed that the unemployment rate for those aged 16 and over in March to May this year was at 3.2 per cent, up 0.2 per cent on the previous quarter.

The employment rate for those aged 16 to 64 has dropped by 0.5 per cent over the last quarter to 75.1 per cent.

There are now an estimated 2.44 million payrolled employees in Scotland as of June 2023, an increase of 24,000 on last year.

But despite the almost record low level of unemployment some sectors of the economy are still finding it tough to hire workers.

Hospitality and agricultural are particularly hard hit with many firms in rural parts of the country still dealing with the impact of Brexit.

The Record revealed in its Broken Brexit series how tourism, fishing and farming have all been dealt hammer blows by the reckless decision to leave the European Union.

Neil Gray, the Wellbeing Economy and Fair Work Secretary, welcomed the low level of unemployment but warned only "an urgent reassessment" of UK immigration policy could solve the recruitment crisis.

"The continued near-record low unemployment rates for those aged 16 and over across Scotland are welcome and reflects the resilience of the labour market amid the challenging economic outlook and ongoing cost-of-living crisis," he said.

"This is compounded by continuing high inflation and rising interest rates.

"With industries such as hospitality and agriculture still facing recruitment challenges, however, an urgent reassessment of UK Government immigration policy is necessary to increase access to the international labour and skills that Scotland needs for our economy and communities to prosper.

"With full powers over migration, Scotland could boost its workforce and tackle recruitment challenges, many of which have been caused by the end of free movement and the Brexit imposed on Scotland by the UK Government."

It comes as wages across the UK have risen at a record annual pace.

Regular pay grew by 7.3 per cent on average in the March to May period from a year earlier, official figures showed.

But despite the record increase pay rises still lag behind inflation.

Regular pay fell by 0.8 per cent after the effect of inflation was taken into account.

The pace of wage rises has come under increasing focus by the Bank of England as it tries to control inflation.

Roz Foyer, the STUC general secretary, said: "It’s chronically hollow of well-renumerated Bank of England executives and politicians to be calling for wage restraint for ordinary workers whilst the pay packets of those in finance and business grows.

"These figures show once again that real terms wages are not driving inflation – they are falling further behind. The economic course the UK Government seem set upon is reckless and excepting a few at the top, will make us all poorer."

Alister Jack, the Secretary of State for Scotland, said: "Scotland continues to have near record unemployment, even in the face of global challenges, our jobs market is proving resilient.

"The UK Government remains committed to halving inflation, reducing debt and growing the economy. Just last month we increased the amount of childcare support a person can claim on Universal Credit allowing thousands more to return to work or progress their careers."

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