Scotland’s unemployment rate down over winter months

The number of Scots looking for work dropped during winter, according to the Office for National Statistics (ONS).

The latest UK report showed 4% of people in Scotland were registered as unemployed during December, January and February, a 0.4% drop on the autumn figures.

Unemployment across the UK increased 0.3% to 4.2% during the same period.

Scotland also saw a 0.5% rise in the number of people in work, compared to a 0.5% drop in the UK as a whole.

However, the ONS warned its labour market surveying is not as reliable as it used to be due to the size of the sample.

The latest figures also pointed to a real terms annual increase in Britain’s average pay over winter – up by 5.6% including bonuses, and by 1.6% after taking price inflation into account.

The ONS said that was the fastest rate of growth in two-and-a-half years.

Wage growth is a key measure monitored by the Bank of England when deciding whether or not to cut interest rates because it can fuel inflation, which is the rate consumer prices rise at.

Over the whole of the UK, the rate of people with a job dipped and the economically inactive – those not in work or looking for a job – rose.

Economists suggested that data could spur the Bank of England to cut interests rates in the summee.

“With employment falling sharply and the unemployment rate climbing, we suspect wage growth will continue to ease in the coming months,” said Paul Dales, chief UK economist at Capital Economics.

“That may allow the Bank to cut interest rates in June.”