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

Despite ongoing economic volatility, Scotland’s labour market has maintained a stable and resilient performance.  The estimates for May to July 2025 indicate that over the quarter, the employment and unemployment rates decreased while the economic activity rate increased. 

The headline figures for this period show the employment rate in Scotland was estimated at 74.5%, down 0.6% over the quarter.  By way of comparison, Scotland’s employment rate was below the UK rate of 75.2%.  The unemployment rate in Scotland was 3.5%, down 0.7% over the quarter.  Scotland’s unemployment rate was below the UK rate of 4.7%. 

The early seasonally adjusted estimates for August 2025 from HMRC Pay As You Earn Real Time Information indicate that median monthly pay for payrolled employees in Scotland was £2,599, an increase of 6.5% compared with August 2024.  The dual impact of rising inflation and increased Employer National Insurance contributions is amplifying the financial challenges for businesses, as employees seek pay rises to offset the rising cost of living.

Despite broader economic uncertainty, the labour market has remained relatively buoyant, reflecting a degree of underlying stability. However, the anticipated introduction of a wide-ranging package of new employment rights is likely to shape employer decision making in the coming months, as businesses assess the potential operational and compliance implications.