The latest Scottish labour market figures for June to August 2024 show continued resilience across the market.  The figures indicate that over the quarter the unemployment rate decreased, while the employment rate increased and the inactivity rate decreased slightly.

The headline figures for this period show the employment rate in Scotland was 73.7%, up 0.8% over the quarter.  By way of comparison Scotland’s employment rate was below the UK rate of 75%.  The unemployment rate was 3.9%, down 0.9% over the quarter.  Scotland’s unemployment rate was slightly below the UK rate of 4%.

The latest early estimates for September 2024 indicate that median monthly pay for payrolled employees in Scotland was £2,441, an increase of 4.9% compared with September 2023.  With the cost of living remaining high, there is still some pressure on employers wishing to retain staff to meet the demands for higher pay.

The employment market is about to see the biggest raft of employment law reform in decades and there are predictions that employer national insurance contributions will be increased in the next budget, all of which inevitably will have some impact on the figures.  We can expect to see employers taking a more cautious approach to recruitment with unfair dismissal expected to become a day one right from Autumn 2026.  As employers digest the impact of the newly published Employment Rights Bill we may well see some levelling out of the figures over the coming months.