The latest Scottish labour market figures for August to October 2024 show a relatively steady market despite ongoing economic uncertainty.  The headline figures for this period show the employment rate in Scotland was 73.2%, down 0.4% over the quarter.  By way of comparison, Scotland’s employment rate was below the UK rate of 74.9%.  The unemployment rate was 3.6%, down 0.7% over the quarter.  Scotland’s unemployment rate was below the UK rate of 4.3%. 

The early seasonally adjusted estimates for November 2024 indicate that median monthly pay for payrolled employees in Scotland was £2,526, an increase of 7.3% compared with November 2023.  This is higher than the growth in median monthly pay for the UK over the same period.  With employer National Insurance contributions increasing in April 2025, inevitably we are likely to see some of this cost passed on to employees through stalling wages.

As we see the largest raft of employment legislation in decades being implemented, the government’s 80% employment rate target seems ambitious as employers take a cautious approach to recruitment.  2025 will be a year of consultation as the new legislation works its way through Parliament – employer engagement is to be encouraged to ensure the true impact of the legislation is thoroughly assessed.  Employers will want to stay ahead of the curve and ensure policies and procedures are updated in line with the changing employment law landscape.