12 Aug 2025
Ann Frances Cooney, employment expert and partner at DWF, has commented on the latest labour market figures in Scotland.
Scotland’s labour market is showing sustained stability amid challenging economic conditions. The estimates for April to June 2025 indicate that over the quarter, the employment rate increased while the unemployment and economic inactivity rates decreased.
The headline figures for this period show the employment rate in Scotland was estimated at 75.1%, up 0.6% over the quarter. By way of comparison, Scotland's employment rate was below the UK rate of 75.3%. The unemployment rate was 3.8%, down 0.5% over the quarter. Scotland's unemployment rate was below the UK rate of 4.7%.
The early seasonally adjusted estimates for July 2025 from HMRC Pay As You Earn Real Time Information indicate that median monthly pay for payrolled employees in Scotland was £2,575, an increase of 6% compared with July 2024. The unexpected rise in UK inflation is likely to intensify employee demands for higher wages, as the cost of goods and services continues to climb.
Despite broader economic uncertainty, the Scottish market has remained relatively steady, reflecting a degree of resilience. However, the forthcoming implementation of a wide range of new worker rights is expected to shape employer behaviour in the coming months. We are likely to see a cautious approach to recruitment and some stalling of wages as employers grapple with the forthcoming changes.
