The Scottish labour market figures show continued resilience for the period April to June 2024.  The figures indicate that over the quarter the unemployment rate stayed the same, while the employment rate increased and the inactivity rate decreased.  The headline figures for this period show the employment rate in Scotland was 73.4%, up 0.3% over the quarter.  By way of comparison Scotland’s employment rate was below the UK rate of 74.5%. The unemployment rate in Scotland was 4.4%, unchanged over the quarter.  Scotland’s unemployment rate was slightly above the UK rate of 4.2%. Looking ahead at the next reported figures, the summer months often provide some buoyancy to the labour market with sporting events such as the Euros and the Olympics helping to boost jobs in hospitality.

The latest early estimates for July 2024 indicate that median monthly pay for payrolled employees in Scotland was £2,427, an increase of 5.8% compared to the same period the previous year.  This is slightly higher than the annual growth in median monthly pay for the UK over the same period.

Over the coming months it will be interesting to see how the new UK government’s plans to reform employment law will affect the Scottish labour market. Employers across the UK are eagerly anticipating the new Employment Rights Bill and the Equality (Race and Disability) Bill which are due to bring many of the employment rights into force from Labour’s Plan to Make Work Pay.  There will inevitably be a period of consultation as the new rights are looked at in detail, providing employers with a chance to help shape the new legislation.  It is predicted that we are likely to see employers take a more cautious approach to recruitment with the new raft of employment protection on the horizon, including unfair dismissal becoming a day one right.