15 Apr 2025
The latest Scottish labour market figures for the period December 2024 to February 2025 show continued resilience against a challenging economic backdrop but there is growing concern that the rising cost of employing staff is going to affect more and more employers causing a damaging impact on the market. The estimates indicate that over the quarter, the economic inactivity rate decreased while the employment and unemployment rates increased. The headline figures for this period show the employment rate in Scotland was estimated at 74.3%, up 0.2% over the quarter. By way of comparison Scotland's employment rate was below the UK rate of 75.1%. The unemployment rate was estimated at 4.2%, up 0.3% over the quarter. Scotland's unemployment rate was below the UK rate of 4.4%.
The early seasonally adjusted estimates for March 2025 from HMRC Pay As You Earn Real Time Information indicate that median monthly pay for payrolled employees in Scotland was £2,508, an increase of 5.3% compared with March 2024. We can expect to see minimal pay increases over the short to medium term as employers factor in the increase in employer National Insurance contributions from April 2025.
The government is conducting extensive consultation on the raft of new legislation being introduced through the Employment Rights Bill. Employers should take the window of opportunity to engage in the consultation to help shape the legislative change.
