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Insider UK
Insider UK
National
Peter A Walker

Scotland’s unemployment rate rises over the last quarter

Scotland’s unemployment rate increased slightly in the last quarter, according to the latest Office for National Statistics figures.

The unemployment rate between February and April for those aged 16 and over was 4.2%, a 0.1% increase on the previous quarter.

This was below the UK-wide rate of 4.7% for over-16s.

The employment rate for those aged 16 to 64 in Scotland was 74.2%, a 0.1% drop on the previous quarter.

There were 2,657 million people aged 16 and over in employment between February and April this year, while 117,000 in that age range were unemployed.

Scotland’s Employment and Fair Work Minister Richard Lochhead said: “For February to April 2021, over the quarter, Scotland’s employment rate estimate decreased slightly to 74.2% and the unemployment rate estimate increased slightly to 4.2%.”

Separate HM Revenue & Customs early estimates for May, also published this morning, showed there were 2.4 million payrolled employees in Scotland – 50,000 fewer than in February 2020.

“These figures reflect some of the challenges faced in Scotland’s labour market to date but they do not reflect the full impact of coronavirus or the outlook for employment, as the Job Retention Scheme continues to help support jobs,” commented Lochhead, adding: “It is crucial the UK Government keep this scheme in place for as long as it is needed.”

Ann Frances Cooney, who leads DWF's Scottish employment law practice, commented that the latest figures reflect a relatively robust labour market.

“The true test will be in September when the Coronavirus Job Retention Scheme (CJRS) is withdrawn.

“Business leaders' pleas to extend the CJRS beyond 30 September 2021 have been rejected to date - from 1 July 2021 employers will be required to contribute towards the cost of furloughed employees' wages.

“The country watches with hopeful anticipation that the easing of restrictions will be sufficient to reduce the need for redundancies when the government support comes to an end.”

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