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Working with You Gov and in partnership with The Adecco Group UK & Ireland, the CIPD has for the first time been able to collect data in our Labour Market Outlook (LMO) survey representative of the UK and including Scotland and other regions. We compare this with the broader UK picture on some major workplace and labour market issues.

The Adecco Group UK&I is part of The Adecco Group, the world’s leading workforce solutions partner. As a global Group, we provide more than 700,000 people with permanent and flexible employment every day. With more than 33,000 employees in 60 countries – 3,000 in the UK&I – we transform the world of work one job at a time. Our colleagues serve more than 100,000 organisations with the talent, HR services and cutting-edge technology they need to succeed in an ever-changing global economy. As a Fortune Global 500 company, we lead by example, creating shared value that meets social needs while driving business innovation. Our culture of inclusivity, fairness and teamwork empowers individuals and organisations, fuels economies, and builds better societies. These values resonate with our employees, who voted us number 2 on the Great Place to Work® - World’s Best Workplaces 2017 list. We make the future work for everyone.

The Adecco Group is based in Zurich, Switzerland. Adecco Group AG is registered in Switzerland (ISIN: CH0012138605) and listed on the SIX Swiss Exchange (ADEN). The Group is powered by eight lead brands: Adecco, Modis, Badenoch & Clark, Spring Professional, Lee Hecht Harrison, Pontoon, Adia and YOSS.

The Adecco Group UK&I’s head office is in London, United Kingdom. We have 10 brands, including The Adecco Group UK&I, Adecco, Ajilon, Badenoch & Clark, Modis, Office Angels, Penna, Pontoon, Roevin and Spring.

Executive summary

Scotland has recently celebrated a high point in labour market performance. For the first time, unemployment (as measured by the International Labour Organization (ILO) claimant count) fell below the UK average to 4% (Scottish Government 2018). Scotland's productivity performance has been the third highest in the UK, after London and the southeast of England. However, that optimism is qualified by some caution on the level of wage growth, the skills level within those jobs and the impending shock of Brexit. This short selection of data from our LMO survey looks at some of the key issues driving the workplace and labour market in Scotland, focusing on the following three driving issues.

Recruitment and redundancy intentions

On recruitment, hiring intentions in Scotland remain steady. Scottish respondents generally intend to declare fewer redundancies, which is similar to the rest of the UK but in fact outperforms London, for example. This is welcome given the context of Scotland’s dependence on certain key sectors, such as oil and gas and financial services. In addition there have been ongoing cost reductions in the public sector as austerity and council tax freezes continue. However, the pressing demands of health and social care integration mean that net employment in the public sector is likely to shift rather than shrink.

Brexit and employment in Scotland

The Scottish Government published a paper in February 2018 calling for Scotland to benefit from a regional migration system (Scottish Government 2018). This is to reflect our challenges around both an ageing workforce and a falling population, where only migration will help solve some of the problems the country faces. This could explain the relatively higher support for Scottish respondents for a regional migration system. However, an integrated UK solution is most favoured overall by Scottish respondents.

Pay intentions in Scotland

Pay is of course another perennial issue. The projections in the CIPD's main report for subdued wage growth are slightly different in Scotland. There is more appetite for building pay in Scotland, which is reflected in a higher intention to increase pay relative to UK respondents. This reflects a pronounced public policy push on pay arising from various Scottish government initiatives and action by major employers such as Standard Life Aberdeen and Scottish Power and smaller organisations such as Scottish Sea Farms. However, a relatively larger number of employers in Scotland are opting for pay freezes, demonstrating that industry context is also important.

Download the survey report below:

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