Ann Frances Cooney, employment expert and partner at DWF, has commented on the latest labour market figures in Scotland.

“The latest Scottish labour market figures for the period October to December 2024 show continued strength in the market despite a difficult ongoing economic climate. The headline figures for this period show the employment rate in Scotland was 74.2%, up 0.9% over the quarter.  By way of comparison, Scotland’s employment rate was below the UK rate of 74.9%.  The unemployment rate was 3.8%, up 0.5% over the quarter.  Scotland’s unemployment rate was below the UK rate of 4.4%. 

The early seasonally adjusted estimates for January 2025 indicate that median monthly pay for payrolled employees in Scotland was £2,486, an increase of 5.2% compared with January 2024.  With the increase in employer National Insurance contributions from April this year we are likely to see employers pass on some of this cost to employees through pay stagnation. 

The forthcoming changes to employment law will undoubtedly lead to employers taking a cautious approach to recruitment over the coming months, with recruitment freezes and redundancies a likely reality.  Labour intensive industries, such as retail and hospitality, are likely to face the greatest impact and will currently be strategising on how to retain essential talent whilst facing increased costs and further regulation.”