Employment figures ‘mask economic challenges in communities’ say small businesses

New figures which show the numbers of unemployed in Scotland falling by 15,000 have been described as “broad brush strokes” which “mask the economic challenges which many Scottish communities face” by the Federation of Small Businesses (FSB).

Labour market statistics released today show the Scottish unemployment rate down to 5.5 per cent, just below the rate of 5.6 per cent for the whole of the UK. Scotland was the only part of the UK where unemployment fell between March and May 2015.

Scotland’s economy grew by 0.6 per cent in the same period, according to Scottish Government statistics.

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Colin Borland, the FSB’s head of external affairs in Scotland welcomed the figures, but said small businesses have a growing concern about skills shortages and the implications of measures outlined in the UK budget, like the increase to the minimum wage.

“These broad brush statistics mask the economic challenges which many Scottish communities face. Ahead of next year’s Scottish Parliament election, we’ll be putting local economics under the microscope and arguing that the time might have come for a different approach to development and growth,” he said.

Minister for Youth and Women’s Employment Annabelle Ewing insisted the figures showed the economic picture was beginning to improve in Scotland.

“As our economy continues to grow, we will use every power we currently have at our disposal to grow the economy even further, increase employment, lower unemployment and remove barriers to the labour market,” she said.