UNEMPLOYMENT in Scotland fell slightly in the last quarter while the UK rate has risen to its highest level since the pandemic, official figures have shown.
Data from the Office for National Statistics (ONS) showed that the unemployment rate for people aged 16 and over in Scotland was 3.7 per cent between March and May this year.
This was 0.5 per cent down on the previous quarter and below the UK-wide rate of 4.7 per cent.
The Office for National Statistics (ONS) said the rate of UK unemployment increased to 4.7 per cent in the three months to May, from 4.6 per cent in the three months to April – marking the highest level since June 2021.
The employment rate for those aged 16 to 64 was 74.9 per cent, which was 0.6 per cent up on the previous quarter.
The figures showed that in Scotland there were 2,674,000 people aged 16 and over in employment between March and May this year.
There were 102,000 people aged 16 and over out of work in Scotland in the latest quarter, according to the figures.
Meanwhile, average earnings growth, excluding bonuses, slowed to five per cent in the period to May to its lowest level for almost three years.
The ONS said the figures point towards further pressure in the UK labour market, days after the governor of the Bank of England warned that the bank is prepared to make larger interest rate cuts if it sees that the job market slowing.
ONS director of economic statistics Liz McKeown said: “The labour market continues to weaken, with the number of employees on payroll falling again, though revised tax data shows the decline in recent months is less pronounced than previously estimated.
“Pay growth fell again in both cash and real terms, but both measures remain relatively strong by historic standards.”
The rise in unemployment in the UK is worse than economists had expected, having predicted that the jobless rate would remain at 4.6 per cent for the month.
Nevertheless, average wage growth was slightly higher than the 4.9 per cent predicted by economists.
But the rate of wage growth was still the weakest figure since the three months to June 2022 and represents a drop from a revised level of 5.3 per cent in the three months to April.
Wage growth continues to outstrip inflation, reflecting a rise of 1.8 per cent after taking Consumer Prices Index inflation into account.
Pressure in the labour market for the three months to May comes as firms swallowed significant increases in national insurance contributions and the national minimum wage in April.
Firms have also been impacted by intensifying economic uncertainty after US President Donald Trump launched a new tariff regime in April, leading to heightened global trade tensions.
The figures also showed job vacancies in the UK fell by 56,000 to 727,000 in the three months to June, compared with the previous quarter.
SNP economy spokesperson Dave Doogan (above) MP said: "The Labour government is destroying jobs and harming the economy - with unemployment at a four year high, the cost of living soaring, and the UK economy and public finances in a worse state than when Keir Starmer entered Downing Street.
"The truth is Brexit Britain is utterly broken - and despite their promises the Labour Party is making things worse, not better. Damaging Labour government policies including the National Insurance tax hike and Brexit are wrecking jobs, increasing the price of food and household bills, and costing the economy and public finances billions of pounds a year.
"The SNP government will continue to lead the UK in delivering support for families and businesses but Westminster policies are actively harming Scotland's interests - and only with the full powers of independence can Scotland escape the long-term decline of Brexit Britain."
