A report by Strathclyde University’s Fraser of Allander Institute said that a rise in inactivity levels and drop in those actually in work were the statistics that mattered.
Its report into the labour market, which is expected to be the first in a series, is the latest piece of evidence that Scotland’s economy is performing more poorly than the rest of the UK’s.
It stated: “Some of the positive statistics in recent months hide a number of more challenging trends. In particular, the recent sharp fall in unemployment appears to stem, not from people finding work, but from people exiting the labour force.”
The growth in part-time work north of the border has also been highlighted, as has the increase in underemployment, rise in temporary work and slower wage growth in Scotland compared to the rest of the UK.
Scottish Conservative shadow economy secretary Dean Lockhart said:
“This report is immensely concerning.
“Any fall in unemployment is welcome, but it must be recognised that this is down to people taking themselves out the economic equation altogether, not a jobs boom.
“That is not the cause for celebration the Scottish Government seems to think it is.
“The report also points to numerous other trends which should focus the mind of the SNP, not least the rise in part-time work.
“The nationalists have been in charge for almost a decade now, but still we lag badly behind the rest of the UK in a number of key areas.
“The SNP has to start delivering soon.”