Scotland’s unemployment rate is continuing its slow but steady decline as the latest figures from the Office for National Statistics show it fell 0.2% to 4.3% from January to March 2021. In contrast to the rest of the UK, Scotland is still outperforming the UK-wide rate of 4.8%.
There were 2.560 million people aged 16-64 in employment between January and March in Scotland, while 116,000 people in that age range were unemployed.
It would be fair to assume that such a small drop in unemployment would mean that job vacancies are still thin on the ground yet hiring demand is currently at its highest level since October 2019. In April, almost 64,000 jobs were advertised online in Scotland – an increase of 254% on the previous year. Granted April 2020 saw vacancies plummet during Lockdown 1.0, but this figure is a 23% increase from March this year, so employer confidence is clearly on the rise.
Speaking in today’s Herald, s1jobs Commercial Director Gavin Mochan notes that the surge in vacancies is largely being driven by the hospitality sector gearing up to move into Level 2, “They have been restocking on staff at a blistering rate – job advertisements across the hospitality sector have risen from just 375 in February to 3,393 in April.”
However, as Glasgow and Moray remain in Level 3 for the meantime, and it is looking ever more likely that East Renfrewshire will have to join them, there could be more disruption ahead for these businesses.
Mochan argues employers may also struggle to get the staff they need as some will have moved on to other, more stable sectors, “A full third of those vacancies are for chefs, who are proving particularly difficult to recruit as some have left the sector for good to pursue work in industries less susceptible to public health restrictions.”
Hospitality vacancies certainly account for the bulk of the new jobs advertised, but there has been growth across all sectors. What remains to be seen is whether these roles can be filled as jobseekers seem more hesitant to make a move. Those in employment or on furlough may be reluctant to take the leap to a new role for fear that the job may be cut if Scotland is hit by a third wave of Covid-19.
It is incredibly positive to see hiring demand so high as the vaccine rollout and the easing of restrictions is clearly giving employers a much-needed confidence boost. Yet, it remains to be seen if this confidence will be shared by candidates.
You can read the full report on the ONS figures on the Herald website and see the full s1jobs analysis here.