Scotland's Labour Market Insights: July 2024

People in work

ILO Employment rate (LFS)

The employment rate (the proportion of people aged 16 to 64 in work) in Scotland based on the ONS Labour Force Survey was estimated at 72.9 per cent in March to May 2024. Scotland's employment rate was below the UK rate of 74.4 per cent.

Full-time/Part-time Employment (APS)

In April 2023 to March 2024, an estimated 1,968,100 people aged 16 and over were in full-time employment while 677,600 worked part-time. Since April 2004 to March 2005, full-time employment as a percentage of all employment had typically been decreasing until April 2012 to March 2013, but has increased again since then being broadly similar from April 2020-March 2021 onwards.

Figure 1: In April 2023 to March 2024, an estimated 74.4 per cent of those in employment worked full-time, while 25.6 per cent of those in employment worked part-time.

Proportion of employment for persons aged 16 years and above by work pattern, Scotland, year ending March 2005 to year ending March 2024

Source: Annual Population Survey, April to March datasets, ONS

Note that these percentage estimates are based on those who responded to the survey question on whether they worked full-time or part-time.

Since April 2004 to March 2005, full-time working as a percentage of all employment has decreased for men but increased for women.

Figure 2: In April 2023 to March 2024, a higher proportion of men are in full-time employment than women (87.1% of men compared to 61.4% of women). A higher proportion of women worked part-time compared to men (38.6% compared to 12.9%).

Proportion of employment for men and women aged 16 years and above by work pattern, Scotland, April 2023 to March 2024

Source: Annual Population Survey, April 2023 to March 2024, ONS

Note that these percentage estimates are based on those who responded to the survey question on whether they worked full-time or part-time.

Figure 3: In April 2023 to March 2024, the most common reason given for working part-time was that respondents did not want a full-time job. This was reported by almost three quarters of women and almost half of men who worked part time.

Reasons for part-time working for men and women aged 16 years and above, Scotland, April 2023 to March 2024

Source: Annual Population Survey, April 2023 to March 2024, ONS

Note that these percentage estimates are based on those who responded to the survey question on their reason for working part time.

Self Employment (APS)

Figure 4: In April 2023 to March 2024, an estimated 306,200 people aged 16 and over were self employed.

Self-employment levels for persons aged 16 years and above, Scotland, year ending March 2005 to year ending March 2024

Source: Annual Population Survey, April to March datasets, ONS

Although it has increased in the latest period, the number of self-employed people is estimated to have fallen since the pandemic. Scotland and the UK have both seen falls in the levels of self-employment since the pandemic.

However, as data sources rely on self-reported employment status from individuals responding to the survey, it is difficult to identify whether this reflects a genuine change in behaviour or simply a change in reporting. There are a number of factors that may have led self-employed workers to change their reported status without significant changes to their working patterns, including the introduction of the furlough scheme during the pandemic and tax changes in April 2021.

The number of people self-employed is estimated to have increased in the last year, however it remains lower than before the pandemic.

Since the start of the series consistently more men than women have reported being self-employed. In April 2023 to March 2024, an estimated 13.9% of men in employment were self-employed, compared to 9.2% of women.

Temporary/Permanent Employment (APS)

Figure 5: In April 2023 to March 2024, an estimated 127,200 employees were employed on temporary contracts.

Employee level for persons aged 16 years and above by contract type, Scotland, year ending March 2005 to year ending March 2024

Source: Annual Population Survey, April to March datasets, ONS

Public Sector Employment

An estimated 605,600 people were employed in the public sector in Scotland as of March 2024.  Employment in the public sector accounts for over one fifth of total employment in Scotland (23.3%).

For further information, and the latest official estimates of public sector employment in Scotland, please visit: Public Sector Employment in Scotland Statistics for 1st Quarter 2024 - gov.scot (www.gov.scot)

The Scottish Government recently published further economic analysis on the Scottish public sector, considering how this has changed over time and how it compares to other parts of the UK and internationally: Public sector: economic overview - gov.scot (www.gov.scot)

Public/Private Sector Employment (APS)

Note that the APS is not the official source for estimates of public sector employment, as this tends to overestimate the level of employment in the public sector due to self-reporting. However, the APS can be used to provide estimates for the characteristics of people employed in the public sector.

Figure 6: In April 2023 to March 2024, an estimated 38.5% of women in employment were employed in the public sector, a higher proportion compared to 20.4% of men. This proportion has been consistently higher for women than men over the time series.

Proportion of men and women who are employed in the public sector, people aged 16 years and above, Scotland, year ending March 2005 to year ending March 2024

Source: Annual Population Survey, April to March datasets, ONS

Figure 7: In April 2023 to March 2024, an estimated 27.0% of people employed in the third sector were disabled, higher than 21.0% in the public sector and 18.5% of those in the private sector. The proportion of people employed in all three sectors who are disabled has been generally increasing since 2014.

Proportion of people in employment who are disabled by sector, people aged 16 to 64, Scotland, year ending March 2014 to year ending March 2024

Source: Annual Population Survey, April to March datasets, ONS

Underemployment (APS)

Underemployment refers to those who are in employment but who would prefer to work more hours in their current job (at their basic rate of pay), in an additional job or in a new job with longer hours to replace their current job. This provides a measure of underutilisation of labour.

Figure 8: In January to December 2023, an estimated 5.9 per cent of those in employment were underemployed. This proportion has been generally decreasing since 2012 and is now the joint lowest in the series.

Proportion of employment for persons aged 16 years and above by underemployment status, Scotland, year ending December 2004 to year ending December 2023

Source: Annual Population Survey, January to December datasets, ONS

Figure 9: In January to December 2023, an estimated 6.5% of women were underemployed, compared to 5.2% of men. The proportion of women who are underemployed has been consistently higher than the proportion of men over time, however this gap has narrowed in recent years.

Proportion of men and women in employment who are underemployed, for persons aged 16 years and above, Scotland, year ending December 2004 to year ending December 2023

Source: Annual Population Survey, January to December datasets, ONS

Payrolled Employees (HMRC PAYE RTI)

This information is based on experimental monthly estimates of paid employees and their pay from HM Revenue and Customs’ (HMRC’s) Pay As You Earn (PAYE) Real Time Information (RTI) data.

Early seasonally adjusted estimates for June 2024 indicate that there were 2.47 million payrolled employees in Scotland, an increase of 0.6 per cent (14,000) compared with June 2023.  

Payrolled employees by age (HMRC PAYE RTI)

The latest available HMRC data published in July 2024 shows that payrolled employee growth varies by age. 

Of the 2.47 million payrolled employees in Scotland in June 2024, the 35-49 and 50-64 age groups had the highest numbers of people employed.  The under 18 age group had the lowest number of people employed.

The 65 and over age group has seen the largest percentage growth in payrolled employees over the year to June 2024. The under 18 age group has seen the largest percentage decrease over this period.

Figure 10: The 65 and over age group has seen the largest percentage increase in payrolled employees since June 2023

Annual Percentage Change in Payrolled employees by age, Scotland, June 2023 to June 2024

Source: PAYE RTI, all age groups, seasonally adjusted, HMRC

Median earnings for payrolled employees (HMRC PAYE RTI)

The latest early estimates for June 2024 indicate that median monthly pay for payrolled employees in Scotland was £2,413, an increase of 5.2 per cent compared to the same period the previous year.

Adjusted for inflation (using the Consumer Prices Index including owner occupiers' housing costs (CPIH)), real median earnings for payrolled empoyees have grown by 2.4 per cent over the year to June 2024.

Figure 11: Real pay for payrolled employees had remained relatively constant up until the pandemic. However, real pay in June 2024 is higher than at the start of the coronavirus pandemic

Median Real and Nominal Monthly Pay for payrolled employees, seasonally adjusted, Scotland, July 2014 to June 2024

Source: PAYE RTI, all industries, seasonally adjusted, HMRC and CPIH, ONS