According to a new report by the Institute For Public Policy Research, Scotland’s economic performance is weaker than the rest of the UK, with a lack of skilled candidates to fill tens of thousands of job vacancies, and Scottish workers facing the lowest rates of career progression in the UK.

The Institute is now calling for a “major reform of the country’s skills system” as part of a drive to increase productivity and tackle “in-work poverty”. About 118,000 new jobs were created between 2010 and 2015, but the recovery is weaker in Scotland than in the UK as a whole.

IPPR Scotland director Russell Gunson (pictured) said: “This report shows that while Scotland has seen a jobs recovery in recent years, there are real concerns, looking ahead. Reform is required to ensure that the skills system in Scotland is focused on the needs of learners and of Scotland’s economy.

“It’s clear that Scotland needs to be more ambitious than just aiming to match the UK economy. When UK pay has been falling in real terms and productivity has stalled, we need to do more than catch up with the UK — we need to go beyond that.

“The skills system in Scotland needs to better show how it contributes to improving productivity. It’s not good enough that, if you are currently in a low-skilled job in Scotland, you are more likely to stay in low-skilled employment than in most of the rest of the UK.”