Unemployment edges upwards in Scotland

Unemployment in Scotland increased during the last quarter amid signs of a cooling jobs market, according to official figures.

Between July and September this year, the unemployment rate among those aged 16 years and over was 3.5%, which was 0.3% up on the previous quarter.

Across the UK, the rate was 3.6%, up from 3.5% in the previous three months.

The Office for National Statistics data showed more people dropping out of the workforce.

There was a hike in the proportion of people neither looking for work nor working.

Figures also showed wages still lagging well behind the soaring cost of living.

Regular pay rose by 5.7% in the year to September, the fastest growth since 2000 excluding the pandemic, when people got big rises returning to work from furlough.

However, when adjusted for rising prices, wages fell by 2.7%.

Prof Stuart McIntyre, from the Fraser of Allander economic institute, said it was clear that that the Scottish economy was "heading into an exceptionally challenging period".

He said: "One rising issue of concern in the Scottish labour market is the growing rate of economic inactivity amongst men, now at 21.1%, its highest rate since the current data series began in 1992.

"There are a number of reasons, both good and bad, for economic inactivity but a particularly worrying one at the moment is the rise in those who are economically inactive because of illness."