Scottish payroll numbers climb by 17,000

The number of Scots on payroll rose by 17,000 to 2.4 million between June and July, according to official figures.

However, the total was 28,000 fewer than in February 2020, before the Covid pandemic struck.

UK-wide, payrolls rose by 182,000 between June and July, but remained 201,000 down on February last year.

The HMRC early estimates have come as the UK Job Retention Scheme continues to unwind. The furlough scheme is set to finish at the end of September.

Meanwhile, separate data showed that Scotland's unemployment rate dropped slightly between April and June.

The Office for National Statistics (ONS) said 4.3% of people over 16 in Scotland were out of work, down 0.1% on the previous quarter.

The figure was less than the rate across the whole of UK, which was 4.7%.

Scotland's employment rate also fell fractionally, measuring 74.2%, down 0.1% on the last set of figures.

UK-wide, the number in work rose slightly, up 0.3% to 75.1%

Statistics showed there were 2.538 million people aged 16 to 64 in employment between April and June, while 117,000 in that age range were unemployed.

Meanwhile, job vacancies in the UK hit a record high of 953,000 over the three-month period.

Employment Minister Richard Lochhead said the latest payroll figures reflected Scotland's "gradual ongoing economic recovery" from the pandemic.

"We are carefully monitoring any impact on employment, particularly as the Job Retention Scheme continues to unwind, and taking action where necessary," he said.

"The Scottish government will continue to do all we can to support employees and employers, but the UK government must extend furlough for those that still need it."

Scottish Secretary Alister Jack said the furlough scheme was supporting 141,500 jobs in Scotland while the Kickstart initiative was helping young people into employment.

Commenting on the statistics, he said: "There are some encouraging signs in the figures published today, but we know there's still a long way to go to get people back into good jobs, businesses back on their feet and our economy prospering again.

"As the success of the UK government-funded vaccine rollout has allowed all parts of the UK to remove the most restrictive lockdown measures, the UK government remains focused on recovery from the pandemic."

Dr Stuart McIntyre, head of research at the Fraser of Allander economic institute said the recovery was still in its early stages.

He said: "Today's data continue to point in the right direction with improvements in key labour market indicators as public health restrictions have eased.

"Be in no doubt that there is still a considerable way to go in our economic recovery from the pandemic, particularly with the end of the furlough support scheme at the end of next month looming large on the horizon.

"Over 141,000 jobs in Scotland remained furloughed at the end of June this year, and few believe that all of these jobs will continue when the furlough scheme ends next month."

He added: "Payroll employment continues to recover in the latest data, but remains below March 2020 levels - and with important variations across Scotland.

"South and west Scotland have almost regained March 2020 payroll levels, while the north east continues to lag significantly behind as it wrestles with the twin challenges of the pandemic and declines in activity in the North Sea."