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More Scots now in employment than before Covid pandemic, figures show

Scotland had a lower unemployment rate than the UK as a whole – but the employment rate was also lower (Andrew Milligan/PA)
Scotland had a lower unemployment rate than the UK as a whole – but the employment rate was also lower (Andrew Milligan/PA)

More Scots may now be employed by companies than there were before the start of the coronavirus pandemic, employment minister Richard Lochhead said.

He told how “early estimates” from HM Revenue and Customs show that in December 2021 there were 2.42 million employees in Scotland – some 22,000 more than there were in February 2020.

He made the comment as the latest data from the Office for National Statistics (ONS) showed 2,671,00 people aged 16 and over were in work in the period September to November last year – an increase of 30,000 from the previous three months.

The employment rate of 75.1% of all those aged 16 to 64 was slightly lower than the UK figure, of 75.5%.

HMRC early estimates show 2.42 million employees in Scotland in December 2021, 22,000 more than in February 2020, prior to the pandemic.

Employment minister Richard Lochhead

But Scotland’s unemployment rate was lower, at 3.6%, compared to 4.1% for the UK as a whole.

A total of 100,000 Scots were unemployed in September to November, according to the ONS figures, a decrease of 21,000 from the previous quarter.

Mr Lochhead said: “For September to November 2021, Scotland’s estimated employment rate rose over the quarter to 75.1% while the estimated unemployment rate fell to 3.6%.

“Separate HMRC early estimates show (there were) 2.42 million employees in Scotland in December 2021, 22,000 more than in February 2020, prior to the pandemic.”

The minister continued: “We are all too aware of the continuing impact and economic uncertainty that Covid is having and that is why we are doing all we can to limit the spread of the virus and mitigate the effects it has on our economy.

“The 2022-23 Scottish Budget invests an additional £68.3 million in employability and training to help businesses address skills shortages and create high quality, sustainable jobs.

“Spending in this area is targeted at all sectors and social groups, including people currently furthest from employment, so that everyone and every region can benefit from Scotland’s economic transformation.”

Mr Lochhead added: “To accelerate the potential of digital technology, £192 million is allocated to improve connectivity and boost the digital economy, including specific support for small and medium-sized businesses.”

Dr Stuart McIntyre, head of research at the University of Strathclyde’s Fraser of Allander Institute, stressed the need for caution when looking at the figures.

The economics expert said: “These latest data suggest that the economic recovery is continuing to take hold. But, as always, it’s important not to get too carried away in response to one set of labour market data.

“While the headline numbers put us broadly back where we were pre-pandemic, this is to misread where the labour market and wider economy currently are.

“We’ve still got many more people claiming unemployment related benefits in Scotland than we had before the pandemic. Indeed, there are still more people claiming unemployment related benefits now than there were at any point during the financial crisis.

“And there is still some way to go before we get back to the number of hours worked in the economy that we had before the pandemic.”

He stated: “Continuing uncertainty about the future path of the virus remains the key factor in the economic outlook.”

He also noted that the figures “set a new record employment rate for working age (16-64) women” with 73.1% of females in this age group in work, and added: “It is too early to tell whether this reflects the changing nature of work available, including flexible and agile working, as well as other factors, and how much it reflects increasing pressure on household budgets given rising inflation.”