Ann Frances Cooney, employment partner at DWF, has commented on the latest labour market figures in Scotland. I have placed the commentary below and attached an image of Ann Frances for your use.

“The Scottish Labour Market figures for the period March to May 2024 indicate that over the quarter the unemployment rate increased, while the employment rate decreased and the inactivity rate increased.  The headline figures for this period show the employment rate in Scotland was 72.9%, down 1.3% over the quarter.  By way of comparison Scotland’s employment rate was below the UK rate of 74.4%.  The unemployment rate in Scotland was 4.9%, up 0.8% over the quarter.  Scotland’s unemployment rate was above the UK rate of 4.4%.  Considering the ongoing economic challenges it is perhaps unsurprising that we have seen some cooling of the labour market.  The figures also reflect a period when there was some degree of political uncertainty with a General Election looming.

Early seasonally adjusted estimates for June 2024 from HMRC Pay As You Earn Real Time information indicate that median monthly pay for payrolled employees in Scotland was £2,413, an increase of 5.2% compared to June 2023.  This is higher than the growth in median monthly pay for the UK over the same period.  Employers are doing their best to meet demands for higher pay, only too aware that employees are prepared to change jobs for increased salaries.

Change is on the horizon for the employment market with a new government now in place and employment law reform high up on the agenda.  In Labour’s Plan to Make Work Pay we saw a raft of employment law commitments, including introducing unfair dismissal as a day one right.  We may well see employers take a cautious approach to recruitment over the coming months as they adapt to the changes.  As we no doubt are about to enter a period of extensive consultation on the proposed reform, employers will be taking the opportunity to assess the impact of change on the workforce.”