Record high payrolls, but employment dips in Scotland

Median monthly pay reached £2,413 in June, a 5.2% year-on-year increase, exceeding UK growth and outpacing inflation.

The number of payrolled employees hit a record high of 2.47 million, with 14,000 new workers added in the past year. However, the employment rate fell to 72.9%, below the UK average, and the unemployment rate rose to 4.9%.

Ann Frances Cooney, employment partner at DWF, said: “Employers are doing their best to meet demands for higher pay, only too aware that employees are prepared to change jobs for increased salaries.

“Change is on the horizon for the employment market with a new government now in place and employment law reform high up on the agenda. In Labour’s Plan to Make Work Pay we saw a raft of employment law commitments, including introducing unfair dismissal as a day one right.

“We may well see employers take a cautious approach to recruitment over the coming months as they adapt to the changes. As we no doubt are about to enter a period of extensive consultation on the proposed reform, employers will be taking the opportunity to assess the impact of change on the workforce.”