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

“Against a challenging economic backdrop and shifting legislative frameworks, Scotland’s labour market is facing growing pressures.  The estimates for July to September 2025 indicate that over the quarter, the employment and unemployment rates decreased while the economic inactivity rate increased.

The headline figures for the period show the employment rate in Scotland was estimated at 74.3%, down 0.7% over the quarter.  By way of comparison, Scotland’s employment rate was below the UK rate of 75%.  The unemployment rate in Scotland was 3.7%, down 0.1% over the quarter.  Scotland’s unemployment rate was below the UK rate of 5%.

The early seasonally adjusted estimates for October 2025 from HMRC Pay As You Earn Real Time Information indicate that median monthly pay for payrolled employees in Scotland was £2,581, an increase of 3.6% compared with October 2024.  Employers are facing intensified financial challenges as inflation climbs and Employer National Insurance contributions have risen, while employees seek remuneration that reflects growing living expenses.

With a wide-ranging package of new employment rights expected imminently under the Employment Rights Bill, employers are increasingly prioritising workforce resilience. Early action through strategic planning and compliance preparation will be critical as businesses evaluate the operational impact of these reforms and position themselves for long-term success. Many organisations are looking to the Autumn Budget for clearer policy signals and reassurance as they navigate an evolving economic and regulatory environment.”