DWF comments on latest Scotland Labour Market figures
During the period September to November 2023 Scotland’s labour market remained robust in the face of significant economic challenges. The headline figures show an estimated employment rate of 74.4%, an increase of 0.1% over the quarter. By way of comparison, Scotland’s estimated employment rate was slightly below the UK rate of 75.8%. Scotland’s estimated unemployment rate was 3.8%, a decrease of 0.1% over the quarter. Scotland’s unemployment rate was below the UK rate of 4.2%. The estimated economic inactivity rate in Scotland was 22.6%, a decrease of 0.1% over the quarter. Such marginal changes over the quarter are encouraging against the backdrop of the cost of living crisis.
As we look ahead to 2024 we can expect further industrial unrest as real terms pay continues to battle against rising prices. Inevitably, we are likely to see more movement in the labour market as employees seek out more lucrative pay packages. In order to retain a stable workforce employers should be prioritising the attraction and retention of core talent to help ride out the challenging economic climate. With increased pay not always being an option for employers, who themselves are facing spiralling costs, the importance of workplace culture and employee engagement should not be underestimated.