Number of payrolled employees in Scotland hits 2.45 million

There were 2.45 million payrolled employees in Scotland in October, the highest number since the recording series began in 2014, according to the latest data.

Meanwhile, Scotland’s unemployment rate was at 3.9% in the third quarter of 2023, a figure which has remained constant throughout the year.

The economic inactivity rate for people aged 16 to 64 was 22.7%, a figure which has also been largely static throughout 2023.

The data on payrolled employees is based on early estimates from HMRC.

The Scottish Government’s Wellbeing Economy Secretary Neil Gray said: “It’s welcome that the latest HMRC early estimates show the highest number of payrolled employees in Scotland since the series began.

“ONS adjusted experimental estimates show that the employment, unemployment and economic inactivity rates for Scotland for July to September 2023 are relatively unchanged over the quarter.

“In the face of ongoing challenges to the labour market, such as Brexit, the Scottish Government is committed to using its limited powers to support more people into work through employability and skills support.

“We have committed to expanding Scotland’s provision of fully funded childcare, which is already the most generous childcare package in the UK, which can support more parents, and those with caring responsibilities, into work.”

He added: “However with industries such as hospitality and agriculture still facing enormous recruitment challenges, an urgent reassessment of UK Government immigration policy is needed to increase access to the international labour market that Scotland needs for our economy to prosper.

“With full powers over migration, Scotland could boost its workforce and tackle recruitment challenges, many of which have been caused by the end of free movement and the Brexit imposed on Scotland by the UK Government.”

Scottish Secretary Alister Jack highlighted the UK Government’s investment in Scotland.

He said: “Our employment record remains strong and our reforms are working – with a near record number of people on company payrolls in Scotland, up 23,000 from this time last year.

“Bolstered by our direct investment in Scotland of £2.5 billion from our levelling up agenda, we are on track to halve inflation and grow the economy for long-term prosperity right across the UK.”

The Scotland Office said estimates show regular pay excluding bonuses has grown by 7.7% in the third quarter of 2023, a figure which is among the highest rates of growth since records began in 2021.

However the Scottish Trades Union Congress (STUC) said workers’ pay has gone down by £1,223 over the last two years in real terms, as a result of not keeping up with inflation.

STUC general secretary Roz Foyer said: “It’s absolutely staggering that due to the economic incompetence of the UK Government, workers throughout the country are paying the price to the tune of £1,223.

“In the midst of a cost-of-living crisis and because of the UK Government’s failure to bring down inflation, workers are still feeling the overall pinch in their pay packets.

“Worse still, with an incredibly gloomy economic outlook with employment down, unemployment up alongside rising economic inactivity, unions throughout the country are absolutely right to point out that the UK Government and Bank of England economic strategy is actually costing jobs.”