KATE Forbes has repeated calls for a reversal in the hike to employers' National Insurance contributions (NICs) after statistics showed a slump in payrolled employees in Scotland.
HMRC early estimates show for July 2025 show there were 2.45 million payrolled employees in Scotland.
While this is 2000 more than the number of payrolled employees in the previous month, it is down 13,000 compared to July 2024.
In April to June 2025, Scotland’s employment rate estimate was 75.1%. The unemployment rate estimate was 3.8% and the economic inactivity rate estimate was 21.9% in the same period.
The unemployment rate was still almost half of what it was in London for the period (6%), according to the Office for National Statistics, and lower than the UK's rate as a whole (4.7%).
The only area of the UK with lower unemployment than Scotland in the period was Northern Ireland.
Deputy First Minister Forbes has said while figures show Scotland's labour market to be "resilient", there must be a reversal in the hike to employers' NICs.
She said: "These figures show that Scotland’s labour market remains resilient with the number of payrolled employees in Scotland and their median monthly pay remaining high.
“The Scottish Government is focused on driving the economic growth, conditions and investment that’s crucial to supporting jobs and prosperity.
“We are taking real action to deliver, investing up to £500 million over five years in the infrastructure and manufacturing facilities critical to growth in the offshore wind sector. We are also investing £90m in our employability services in 2025-26 to support people towards and into employment.
“However, we need decisive action from the UK Government to boost growth and a reversal of the decision to raise employers’ National Insurance contributions.”
In June. the SNP said the hike was "destroying jobs, squeezing wages and choking off economic growth".
Rachel Reeves announced in her UK Budget last October that employers’ NICs would rise from 13.8% to 15% on salaries above £5000. The Government said the changes would eventually raise £25 billion a year.
The number of payrolled employees has decreased for all regions and countries of the UK, except for Northern Ireland where it has increased by 0.7%, when comparing July 2025 with the same period the previous year.
The figures are likely to be revised when more data is received next month, ONS said.
