Ann Frances Cooney, employment law partner at DWF leading the Scottish employment law practice, comments on today’s labour market data. She said:

“The latest survey of Scotland’s labour force indicates that there has been little change over the quarter April to June 2022 compared with the previous quarter (January to March 2022) and pre-pandemic (December 2019 to February 2022).

“As we look ahead, labour supply is likely to continue to be a concern for many employers in Scotland. With retention and recruitment difficulties continuing, employers are having to think of new and innovative ways to attract the best talent, as well as the more traditional route of increased pay.

“With the cost of living crisis employees quite simply need more money to live, making a competitive pay package crucial. With no clear solution in sight, the challenges look set to continue into the Autumn.”

Unemployment rates have decreased by 0.5% against pre-pandemic levels and have remained at 3.2% over the quarter and is below the UK rate of 3.8%. The estimated unemployment rate (16+) in Scotland is 75.4%, an increase of 0.1% against pre-pandemic levels but down 0.1% over the quarter. Scotland’s employment rate was also slightly below the UK rate of 75.5%. The estimated rate of economic inactivity in Scotland was 22%, an increase of 0.4% against pre-pandemic levels and 0.1% over the quarter. IT is also ).6% higher that the UK rate of 21.4%.