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Scottish jobs market shows mixed picture ahead of general election
Ann Frances Cooney – Employment Partner at DWF
Scotland’s labor market recorded mixed results in the period February to April 2024, with unemployment rising to 4.7%, employment falling to 73.1% and inactivity rising to 23.2%.
Ann Frances Cooney, DWF’s employment partner, commented: “The cooling of the labor market is perhaps expected in a context of difficult economic climate. Headline figures show that unemployment in Scotland was 4.7%, an increase of 0.4% over the quarter.
“By way of comparison, Scotland’s unemployment rate was above the UK rate of 4.4%. The employment rate in Scotland was 73.1%, down 1.3% over the quarter. Scotland’s employment rate was below the UK’s rate of 74.3%.
Frances Cooney noted that HMRC data indicates an increase in the average monthly salary of salaried employees, reaching £2,411 in May 2024, an increase of 5.8% compared to the previous year. This growth exceeds the UK average, highlighting the ongoing competition for talent.
She added: “Employees have consistently demonstrated that they are prepared to change jobs for higher wages. Employers are doing what they can to stem the flow of lost talent, increasing salaries where they can.”
“With the General Election less than a month away, we can expect more changes in the job market. With opinion polls predicting a change in government, employers are likely to tread with some caution when recruiting – especially with unfair dismissal set to be a right on day one if Labor wins the election.
“The Labor Party has promised to bring a range of new and improved employment protections. With political uncertainty and change on the horizon, we could see the job market slow down as employers adapt to the changes.”