Scotland’s unemployment rate has fallen to a record low, official figures show.

The Office for National Statistics (ONS) found that the unemployment rate for those aged 16 and over was 3.1% between May and July.

This was down on the period between April and June this year when the rate was 3.2% and is the lowest level since records began in 1992.

The UK unemployment rate was 3.6% over the same period – its lowest level since 1974.

However, the squeeze on pay remains, with rises in regular pay failing to keep up with the rising cost of living.

When taking the rise in prices into account, the value of regular pay fell by 2.8%, the ONS said.

Inflation – a measure of price rises – remains at a 40-year high of 10.1%. The latest inflation figure, due out on Wednesday, is forecast to be higher.

SCC Chief Executive, Liz Cameron CBE, said:

“Scottish firms are doing their best to keep afloat during the cost of doing business crisis, they are also facing an extremely tight labour market which is impacting their ability to invest and grow. 

“The cost of doing business crisis is intensifying the challenges present in the already tight labour market, as it is having a significant impact on firm’s abilities to invest in the workforce. As rising costs force businesses to put investment plans on hold, budgets for people training and development are taking a hit.    

“The UK Government must help ease this burden by reducing the upfront costs on business and providing training related tax breaks, reversing the National Insurance increase and reforming the Shortage Occupation List (SOL) to include more jobs at more skill levels, to meet the needs of Scottish businesses.”

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