Despite economic challenges, the employment rate in Scotland rose to 74.1%, a 0.9% increase over the quarter, although it remains below the UK average of 75%. The unemployment rate also saw a slight increase, reaching 3.7%, which is still lower than the UK’s 4.4%.

Ann Frances Cooney, employment expert and partner at DWF, said: “The early seasonally adjusted estimates for February 2025 indicate that median monthly pay for payrolled employees in Scotland was £2,466, an increase of 4.8% compared with February 2024.

“It is perhaps inevitable that we will see some stalling of pay with the increase in employer National Insurance contributions from next month. 

“Employers across Scotland are preparing for the raft of new employment legislation and are understandably taking a cautious recruitment strategy. With unfair dismissal becoming a day one right, employers are eager to understand the mechanics of the “lighter touch” approach to dismissal during the probationary period.

“In the meantime employers should be auditing current probationary, performance management and disciplinary procedures to ensure they are robust and fit for purpose when the new legislation is implemented next year.”