During the period October to December 2023 Scotland’s labour market remained resilient despite the ongoing economic uncertainty.  Over the quarter the unemployment rate increased slightly, the employment rate increased and the inactivity rate decreased.  The highlights for the period show Scotland’s unemployment rate was 4.5%, an increase of 0.1% over the quarter.  By way of comparison Scotland’s unemployment rate was above the UK rate of 3.8%.  The employment rate in Scotland was 74.4%, an increase of 0.6% over the quarter.  Scotland’s employment rate was below the UK rate of 75%.  The economic inactivity rate in Scotland was 22%, above the UK rate of 21.9%.

Early seasonally adjusted estimates for January 2024 from HMRC Pay As You Earn Real Time Information indicate that median monthly pay for payrolled employees in Scotland was £2,359 an increase of 6.1% compared with January 2023.  Despite the increase in pay the economic climate continues to challenge Scottish employers and employees alike with spiralling costs.  With employers struggling to meet the demands for increased pay, we are likely to see more industrial unrest over the course of 2024.  As ever, employee engagement with a focus on attracting and retaining core talent is vital.