Average earnings in Scotland have fallen to 2005 levels and will not return to pre-recession highs until 2016 at the earliest, Scottish government figures released over the weekend suggest.

Training, Youth and Women’s Employment Secretary Angela Constance said yesterday that around half of working age adults and over half of children in poverty are in working households.

“Despite the continued improvements in Scotland’s economic performance, too many households still struggle to meet their bills with wages eroded and the cost of living increasing,” she added.

Youth unemployment has fallen by 2.9 per cent over the year, and is level with the British average, while the number of women in employment has reached a record level of 1,250,000 — 36,000 more than a year ago.

Holyrood’s figures show the number of Scots in work reached a record high of 2,594,000 earlier this year.

Ms Constance said women still faced a number of challenges in the workplace, including greater job insecurity, higher levels of under-employment and pay inequality, with women being paid 19 per cent less on average than their male counterparts.