Scottish unemployment continues to fall

 

© The Herald Originally published: 17/7/2008

Scotland is outperforming the rest of the UK on the jobs front, unemployment figures for May show.

The number of people out of work in Scotland fell by 25,000 in the three months to May to 105,000, according to the International Labour Organisation, while across the UK as a whole the number of people out of work continued to rise to a total of 1.62 million.

The Scottish unemployment rate also fell to a new record low of 4per cent which is below the UK average unemployment rate of 5.2per cent.

Total employment in Scotland has equalled the previous high point of 2,554,000 - a 16,000 increase over the quarter.

Analysts believe Scotland is being protected from the full force of any boom and bust in the economy in terms of jobs front - partly because of its historically slower rate of economic growth. But all agree that Scotland is not immune from the effects of the credit crunch. A Royal Bank of Scotland survey recently showed that Scottish companies are shedding jobs at the fastest rate in more than five years and that output is slowing, costs rising and business expectations falling.

Martin Ellis, chief economist at HBOS said: "These unemployment figures show the Scottish economy is holding up well despite the broader economic downturn.

"We are likely to see a general slowing in the Scottish economy as we will in the world and UK economy. But clearly Scotland is starting from a position of strength " David Lonsdale, Assistant Director of CBI Scotland agreed that the cycle of economic downturn would affect Scotland in the future after it has taken hold England.