INCREASING numbers of employees are willing to work longer hours, while thousands more have left the labour market altogether after failing to find a suitable job, in a trend that experts describe as “worrying”.
Figures show 59,000 extra people across Scotland became economically inactive last year, with rates rising to levels not seen for a decade.
Unemployment rose in Scotland over the last three months, with the jobless total increasing by 6,000 to stand at 135,000.
Data from the Office for National Statistics shows there was an increase in the number of people in work, rising by 8,000 over the quarter to 2,611,000.
But economic experts are warning the overall figures mask a worrying trend within the jobs market, with thousands of people classed as “under-employed” – people who want a second job or more hours in their current role.
There is also a rise in the number of economically inactive Scots, with sharp increases in people on long-term sick leave and others classed as “discouraged workers” – an individual who has given up looking or has had no success in finding a job The figures show there are now 765,000 economically inactive Scots, or and make up 22.5 per cent of the total workforce. There was also a 2.5 per centpc rise in the number of under- employed Scots and they make up around 9.5 per centpc of the labour market.
Professor Graeme Roy, director of the Fraser of Allander Institute at Strathclyde University, said: “Today’s increases in both employment and unemployment of 8,000 and 6,000 respectively in the final three months of 2016 are small in the context of more thanover 2.6 million people employed in Scotland.
“That being said, the increase in inactivity of 59,000 witnessed over 2016 – which is in sharp contrast to the UK as a whole – is a concern as it suggests an increasing number of people not actively looking for work.
“If this reflects a rise in the number of people studying or in training, then this may be positive for the economy in the long run. But if instead it reflects people leaving the labour market entirely, then this is undoubtedly a worrying trend.” “ The figures also show the Scottish unemployment rate now stands at 4.9 per centpc, slightly higher than the rate of 4.8 per centpc across the UK.
Scotland’s employment rate is lower than the UK as a whole, with 73.6 per centpc of the workforce north of the border having a job, compared to 74.6 per centpc .
Scottish SSecretary David Mundell said: “There is cause for some cautious optimism about the state of Scotland’s labour market, with employment up and more women returning to the labour market.
“However, declining economic activity during the last 12 months, and the gap between the Scottish and UK labour markets, remains a concern.
Scottish GGovernment ministers, meanwhile, stressed the figures showed 47,000 more people in work than there were at the pre-recession peak.
Scottish Minister For employability and Training, Jamie Hepburn, said: “These figures are encouraging and show Scotland’s labour market remains resilient.
“It is therefore encouraging to note this rise in the number of people in work, alongside some positive statistics on female and youth employment, where we continue to lead the UK.”
However, Liz Cameron, chief executive of Scottish Chambers of Commerce, said: “We are still detecting significant skills shortages across a range of sectors and, in these circumstances, Scotland’s employment rate really ought to be closing the gap with the UK.” as a whole.
“We need to get more of Scotland’s people back into productive work as quickly as possible and that will mean not just addressing the needs of young people, but workers of all ages whose skillset may need to be adapted to meet business demand for talent.”
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