Scotland’s employment rate climbs 0.8% over third quarter

Scotland's employment rate climbs 0.8% over third quarter

Ann Frances Cooney

Scotland’s job market remains strong despite the ongoing cost of living crisis and predictions of upcoming employment law reforms.

The employment rate rose to 73.7% while unemployment fell to 3.9% between June and August 2024. However, Scotland still lags behind the UK’s overall employment rate of 75%.

Ann Frances Cooney, employment partner at DWF, explained: “The latest early estimates for September 2024 indicate that median monthly pay for payrolled employees in Scotland was £2,441, an increase of 4.9% compared with September 2023. With the cost of living remaining high, there is still some pressure on employers wishing to retain staff to meet the demands for higher pay.



“The employment market is about to see the biggest raft of employment law reform in decades and there are predictions that employer national insurance contributions will be increased in the next budget, all of which inevitably will have some impact on the figures.

“We can expect to see employers taking a more cautious approach to recruitment with unfair dismissal expected to become a day one right from Autumn 2026. As employers digest the impact of the newly published Employment Rights Bill we may well see some levelling out of the figures over the coming months.”

Deputy First Minister Kate Forbes highlighted the near-record levels of payrolled employment and the focus on growing the economy through initiatives such as expanding the offshore wind sector and attracting investment.

She said: “While the Scottish economy is proving resilient with evidence of growth, households and businesses are still feeling the effects of harsh trading conditions and the global cost of living crisis.

“This is why our Programme for Government is focused on creating the conditions for prosperity.

“We are committing more than £5 billion this year to grow the economy, accelerating the expansion of the offshore wind sector and attracting investment through the Scottish National Investment Bank.”

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