New GDP figures show fastest annual growth since 2007
Both Westminster and Holyrood politicians have welcomed the latest employments statistics published today. Scottish Secretary Alistair Carmichael says the figures show that the UK’s long term economic plan is working, while Cabinet Secretary for Fair Work, Skills and Training Roseanna Cunningham says Scotland continues to outperform the UK.
The number of people in employment in Scotland has increased by 50,000 over the year, reaching a record high of 2,612,000 as new GDP figures show the fastest annual growth since 2007.
ONS Labour Market Statistics released today covering the period September to November 2014 show female employment has also reached a record high and Scotland’s youth unemployment level is at its lowest in five years.
Cabinet Secretary for Fair Work, Skills and Training Roseanna Cunningham has welcomed today’s Labour Market Statistics which show:
- The level of unemployment has fallen by 20,000 over the year and by 79,000 since its recession peak in 2010
- The Scottish unemployment rate of 5.7 per cent remains below the overall UK rate, with Scotland also having a higher employment rate and lower economic inactivity rate
- The number of people claiming Jobseekers Allowance has fallen by 24.9 per cent over the year.
In addition, National Statistics published today by the Scottish Government covering 2014 quarter 3 show that the Scottish economy continues to improve, growing by 3.0 per cent from the same quarter in the previous year. This is the fastest annual growth since 2007 with headline UK annual growth for the same period at 2.6 per cent. Growth over the quarter in Scotland was 0.6 per cent, the ninth consecutive quarter of expansion.
The construction sector again showed its strength, growing by 3.2 per cent over the quarter and 6.6 per cent over the year. The services sector, which accounts for around 72 per cent of the Scottish economy, grew by 0.6 per cent over the quarter with some manufacturing sectors also showing growth.
Ms Cunningham (above) said: “Scotland is again outperforming the UK on employment, unemployment and inactivity rates and a 3 per cent expansion in our economy over the year is a clear demonstration of our growing strength, not least in the construction sector.
“Our work on jobs and growth is continuing to pay off with record employment levels increasing this month and female employment also reaching a record high, welcome evidence of our on-going work on narrowing the gender gap.
“I am particularly pleased to note positive news on youth employment and I am determined that we will maintain our focus on increasing the employment opportunities for our young people. We will continue to work with local government and employers to deliver the recommendations of the Commission for Developing Scotland’s Young Workforce so that we deliver our ambitious programme to develop a world class vocational education system.
“This government is determined to close the attainment gap in our schools and enable the widest possible access to Higher Education so that everyone gets an equal chance at gaining qualifications, and therefore a job, regardless of their background.
“As the economy grows, we must ensure that everyone is able to benefit from our success. We will continue to use all of the powers we have at our disposal to grow the economy, increase employment, lower unemployment and remove barriers to the labour market.
“The Scottish Parliament will shortly have the first reading of the budget bill for 2015/16 which includes £4.5 billion of investment in infrastructure and additional funding for youth employment to secure sustained growth for Scotland.”
Scottish Secretary Alistair Carmichael (above) also welcomed the latest figures. He said: “Today’s employment figures show a record number of Scots in work, more women in employment than ever before and jobseekers allowance claimants at its lowest level since 2008.
“The UK Government has stuck to its long term economic plan, creating the right conditions to rebuild and rebalance our economy. Together with the safety and security which comes from being part of the UK this has helped our businesses grow and create more sustainable jobs. As a result, over the past four and half years employment has risen by 167,000 and unemployment has fallen by 61,000.
“It’s also welcome news to see Scotland’s economy continuing to grow, building on two successive years of economic growth. The rise in unemployment over the past quarter highlight the challenges which remain. Recent business surveys however show Scotland’s economic growth is set to continue into 2015 and our labour market is expected to build further on the record numbers we have seen. We will take responsibility to help those who fall out of work ensuring they can make the most of the opportunities being created in communities across the country.”
Headline Statistics for the September to November 2014 quarter:
- Employment in Scotland increased by 1,000 over the quarter, and increased by 50,000 over the year, to stand at 2,612,000.
- The Scots employment rate increased over the quarter to 74.1 per cent. The rate is above the UK average of 73.0 per cent.
- Unemployment in Scotland increased by 7,000 over the quarter and fell by 20,000 over the year. The level now stands at 158,000.
- At 5.7 per cent, the Scots unemployment rate is just below the rate of 5.8 per cent for the UK as a whole.
- Economic Activity increased by 8,000 over the quarter and now stands at 2,770,000. Also, the Economic Activity rate increased over the quarter to stand at 78.7 per cent.
- In December 2014, the number of people out of work and claiming Jobseeker’s Allowance (JSA) was 85,000.
Latest Data for Scotland:
Employment
The Labour Force Survey (LFS) indicates that the number of people in employment in Scotland from September to November 2014 was 2,612,000. Employment was up by 1,000 compared to the previous three months, and was up by 50,000 compared to the same quarter last year. The employment rate increased on the previous quarter, and it was up by 1.5 p.p. compared to the same quarter last year, at 74.1 per cent. In comparison, the Scottish employment rate is above the UK average.
Unemployment
Unemployment in Scotland was up 7,000 over the quarter September to November 2014, to 158,000. The level was down 20,000 compared to the same quarter last year. The unemployment rate was up 0.2 p.p. on the previous quarter at 5.7 per cent, which is down 0.8 p.p. over the year.
Claimant Count
The claimant count in Scotland, based on the seasonally adjusted number of people claiming Job Seeker’s Allowance (JSA), fell by 2,100 from November to 85,000 in December 2014. The level is down by 28,200 on December 2013. The claimant count rate fell by 0.1 p.p. over the month at 3.1 per cent, and is down 1.0 p.p. over the year.
Economic Activity
The number of economically active (defined as those in employment or ILO unemployed, and seasonally adjusted) in Scotland in the September to November 2014 quarter was 2,770,000. This was up 8,000 on the previous quarter, and is up 29,000 on the same point a year ago. Among those aged 16-64 the economic activity rate was 78.7 per cent, up 0.3 p.p. on the previous quarter, and up 0.9 p.p. over the year.
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