Scotland’s labor market experienced mixed results in the second quarter of 2024. While the earnings growth was robust, unemployment slightly increased. Median monthly pay reached £2,413 in June, marking a 5.2% year-on-year increase, surpassing UK growth and beating inflation.
The number of payrolled employees reached 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, the employment partner at DWF, commented, “Employers are doing their best to meet demands for higher pay, aware that employees are prepared to change jobs for better salaries.
With a new government in place and employment law reform high on the agenda, we may see employers take a cautious approach to recruitment over the coming months. As we are about to enter a period of extensive consultation on the proposed reform, employers will be assessing the impact of these changes on the workforce.”
Unemployment in Scotland is on the rise, with new figures revealing the SNP Government’s struggles to tackle the growing crisis.
Earnings climb despite unemployment rise
The jobless rate for people aged 16 and over was 4.9% between March and May, representing a 0.8% increase from the previous quarter and surpassing the UK-wide rate of 4.4%. The Office for National Statistics reported 133,000 people in Scotland were out of work during this period. The employment rate for individuals aged 16-64 dropped to 72.9%, a decline of 1.3% from the previous three months and below the UK-wide employment rate of 74.4%.
Labor MSP Daniel Johnson criticized the SNP, stating, “These dire figures show the toll SNP failure is taking on workers and our economy. The SNP has amplified Tory’s economic chaos, and people across Scotland are paying the price. More and more Scots are finding themselves out of work, but the SNP has no plan to turn the tide and deliver the growth and jobs our country needs.”
He added, “Across the UK, Labor will end the Tory economic chaos, create opportunities, and make work pay – but we still need to end SNP incompetence here in Scotland.
The SNP must grow our stagnating economy, support people in work, and develop a skills system that is truly fit for purpose.
Deputy First Minister and Economy Secretary Kate Forbes highlighted the government’s ongoing efforts. While we will continue to work closely with businesses and industry to give more people who are currently not economically active opportunities in training and work and address current skills gaps from within our current population, we also need more people to come to live and work in Scotland. This is why we have launched Scotland’s Migration Service to attract workers with the right skills.”
The Scottish Government faces mounting pressure to reverse the unemployment trend and foster economic growth amid criticism from political opponents and concerns from citizens.
