Largest Fall In Unemployment Rate For Four Years

16th December 2012

Finance Secretary John Swinney has welcomed new statistics showing the largest fall in the unemployment rate in Scotland for four years. Unemployment in Scotland has fallen by 19,000 during the most recent quarter, with a significant drop in youth unemployment over the year.

The headline figures published by the UK Office of National Statistics covering the three-month period from August to October, show that the unemployment rate decreased by 0.6 percentage points to 7.6 per cent. The fall over the quarter is the largest fall in the rate since March to May 2008.

The UK unemployment rate fell by, 0.2 percentage points over the same period to stand at 7.8 per cent.

Scotland’s headline employment rate fell by 1.0 percentage points to 70.4 per cent over the quarter to August to October.

The youth unemployment rate (16 to 24 year olds) in Scotland fell by 4.3 percentage points over the year to Aug-Oct 2012 to 21.1 per cent. The UK youth unemployment rate is currently 21.2 per cent.

Commenting of the figures at the National Economic Forum at Murrayfield Stadium in Edinburgh, Finance Secretary John Swinney said:

"Today's figures show the largest fall in Scotland’s unemployment rate since March to May 2008. The unemployment rate in Scotland is once again lower than that of the UK as a whole and is the lowest of all UK nations.

"We welcome this fall in unemployment over the quarter and the substantial drop in youth unemployment over the year in particular. These figures mean the headline jobless rate now at its lowest in almost three years, but more still needs to be done, particularly in light of the fall in employment.

"The Scottish Government is doing all it can to expand our economy by channelling funding into infrastructure projects. Through the budget, we have drawn down resources to fund a further economic stimulus to the Scottish economy of over £180 million and we are taking action to protect households, businesses and front line services.

"We welcome the UK Government's announcement in its autumn statement last week to stimulate capital projects, which should also have a beneficial effect on employment. However, it is unfortunate that this initiative had been delayed for so long and the tax and benefit measures in the autumn statement which will impact on household incomes - particularly the poorest households - threatens to restrict recovery.

"Tackling youth unemployment remains a priority and the rate has fallen by 4.3 percentage points over the year.

"As part of our commitment to maximise employment for young people, we are investing a total of £80 million in creating opportunities that will help improve the job prospects of 23,000 young people.

"However, Scotland needs its own economic and financial powers to allow us to follow a uniquely Scottish approach that will bring much needed jobs and investment for a prosperous future for all."

Welcoming the significant fall in the youth jobless figure, Youth Employment Minister Angela Constance, who is today launching a campaign to encourage employers to support young unemployed people, said:

"Today's figures are a very welcome step in the right direction and reflect the important initiatives the Scottish Government has been taking forward to promote youth employment.

"However, there must be no let up in our efforts to reduce the youth jobless figure still further. I have spent much of the last year selling the benefits of taking on young people to businesses in Scotland and today marks a significant step forward. The Make Young People Your Business initiative which I am launching today highlights, in the clearest possible terms, the benefits that a young person can bring to all types of business, both large and small, and how businesses can go about recruiting them.

"In Scotland, we have a talented, enthusiastic generation of young people, many of whom need assistance in finding work. In the current economic climate, young people can bring enormous enthusiasm, fresh ideas and creative modern thinking to help drive businesses and the Scottish economy forward.

"The same young people can be nurtured, trained and could very well become the future of whatever company they join. In truth, the young people are the business of all of us, right across the public, private and third sectors, but today it is Scotland's enterprise community that I am calling on to Make Young People Your Business."