Scottish Unemployment Rate Falls to 3.3%  – Scottish Business News

Scotland’s unemployment rate dropped by 1.1% in the third quarter of 2024, bringing the rate down to 3.3%, according to the latest data from the Office for National Statistics (ONS). The figures, covering July to September, reflect a positive trend in the Scottish labour market despite ongoing economic pressures.

Additionally, median monthly pay for payrolled employees in Scotland increased by 6.2% over the year to October, reaching £2,466. However, this growth lags behind the UK-wide median increase of 7%. Despite the rise in wages, experts warn that employers may begin tightening recruitment and limiting pay increases due to rising labour costs and economic uncertainty.

Ann Frances Cooney, partner at DWF, commented on the situation: “With the recent budget announcing increases to employer National Insurance contributions from April 2025, we can expect employers to pass on this burden to employees to some extent and limit pay increases over the coming months. We may also see employers limit recruitment to help manage labour costs or even reduce their headcount.”

The claimant count in Scotland also saw a slight rise in October, increasing by 500 (0.5%) over the month and by 6,600 (6.1%) over the year, bringing the total number of claimants to 114,800.

Scottish Secretary Ian Murray highlighted the importance of addressing labour market challenges: “Getting people into work is key to delivering economic growth, and our Get Britain Working white paper will tackle inactivity in the labour market head-on through measures including an overhaul of our Jobcentres.”

Murray also pointed out upcoming initiatives aimed at improving job security and wages: “We’re making work pay by increasing the National Living Wage in April – delivering a pay rise of £1,400 a year for hundreds of thousands of full-time workers in Scotland. We’re also banning exploitative zero-hour contracts as part of the biggest upgrade to workers’ rights in a generation through our Employment Rights Bill.”

As Scotland continues to navigate economic challenges, including inflationary pressures and rising operational costs for businesses, experts suggest that further changes in employment practices could be on the horizon.