THE UK Government’s immigration policy must be urgently reassessed with hospitality and agriculture sectors in Scotland continuing to struggle with recruitment, a minister has said.
Fresh statistics show Scotland’s employment rate rose in the last quarter to 75.1% while the estimated inactivity rate fell to 21.4%.
But the unemployment rate also rose to 4.3% - an increase of 1.2% over the period.
Neil Gray, Scotland’s Wellbeing Economy Secretary, said although a rise in employment was welcome, the UK Government has caused a recruitment crisis in hospitality and agriculture because of its controls on immigration.
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Gray insisted Scotland should be given full powers over migration so it can boost the workforce.
He said: “The increase in the unemployment rate over the quarter and the year for those aged 16 and over across Scotland reflects the ongoing challenges facing the economy amid the ongoing cost of living crisis, compounded by high inflation and interest rates.
“The Scottish Government is committed to supporting more people into work – including those with a disability, those with health conditions and those with caring responsibilities.
"We are developing a lifetime skills offer for adults and our apprenticeship programme is enabling employers to invest in their workforce and provide greater opportunities to those at the start of their careers.
“However, with industries such as hospitality and agriculture still facing recruitment challenges an urgent reassessment of UK Government immigration policy is necessary to increase access to the international labour and skills that Scotland needs for our economy and communities to prosper.
“With full powers over migration, Scotland could boost its workforce and tackle recruitment challenges, many of which have been caused by the end of free movement and the Brexit imposed on Scotland."
The unemployment rate for men aged 16 and over rose over the quarter to 4.8% while the rate for women rose to 3.8%.
Separate HMRC early estimates show 2.45 million payrolled employees in Scotland in August 2023, 30,000 more than in a year ago.
The claimant count unemployment rate in August 2023 was 3.6%. There were 109,200 claimants of unemployment related benefits, a decrease of 1.4% from a year ago.
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