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

“Despite a difficult economic backdrop and major employment law reform, the Scottish labour market continues to show signs of resilience.  The estimates for September to November 2025 indicate that over the quarter, the employment rate increased, while the unemployment rate and economic inactivity rates decreased.

The headline figures for the period show the employment rate in Scotland was estimated at 74.7%, up 0.4% over the quarter.  By way of comparison, Scotland’s employment rate was below the UK rate of 75.1%.  The unemployment rate in Scotland was 3.7%, down 0.2% over the quarter.  Scotland’s unemployment rate was below the UK rate of 5.1%.

The early seasonally adjusted estimates for December 2025 from HMRC Pay As You Earn Real Time Information indicate that median monthly pay for payrolled employees in Scotland was £2,580, an increase of 4.2% compared with December 2024.  Businesses are experiencing mounting financial pressures due to inflation and increased Employer National Insurance liabilities, alongside heightened expectations from employees for remuneration that aligns with rising living expenses.

The labour market figures show an estimated 155,000 working days were lost because of labour disputes across the UK in November 2025.  This is the highest number of working days lost since January 2024.  With significant legislative reform taking effect and trade unions assuming a more prominent role, it is vital for employers to adopt a clear, strategic approach to union engagement to help avoid industrial unrest.

With the Employment Rights Act 2025 now receiving Royal Assent, employers are preparing for the wide‑ranging reforms due to take effect from 2026 and beyond. As organisations assess the operational and compliance impact, many are reinforcing workforce resilience. Early, strategic planning will be essential for managing risk and ensuring long‑term success in a rapidly evolving regulatory landscape.