The latest Scottish labour market figures for September to November 2024 show that over the quarter the employment rate rose while the unemployment and economic inactivity rates fell – demonstrating continued strength despite ongoing economic uncertainty.  The headline figures for this period show the employment rate in Scotland was 74.1%, up 1% over the quarter.  By way of comparison, Scotland’s employment rate was below the UK rate of 74.8%.  The unemployment rate was 3.8%, down 0.2% over the quarter.  Scotland’s unemployment rate was below the UK rate of 4.4%. 

The early seasonally adjusted estimates for December 2024 indicate that median monthly pay for payrolled employees in Scotland was £2,485, an increase of 4.8% compared with December 2023.  This is lower than the growth in median pay for the UK over the same period.  With employer National Insurance contributions rising in April 2025 we are likely to see some of this cost passed on to employees through wage stagnation. 

As we look at the year ahead we predict some trepidation across the labour market as employers grapple with the raft of employment legislation which is being introduced by the government – a cautious approach to recruitment and a focus on retention of core talent are both likely.  We would encourage employers to engage in the extensive consultation programme so that they can help shape the employment landscape.