Scotland – UK Regional Labour Market Trends, August 2024
Scotland’s 2024 Job Market: IT Leads, Professional Services Grows, Banking Declines
Key findings include:
- Scotland’s job market grew 0.5%, lagging behind the UK’s 2.5% growth.
- IT has remained the dominant area, accounting for 21.6% of all job vacancies.
- The Professional Services industry is anticipated to lead the job market, holding an estimated 18.3% share of all vacancies across industries.
- Turner & Townsend lead the way, with 782 vacancies and a 15.6% year-on-year (YoY) increase.
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In the first seven months of 2024, Scotland recorded 12,766 professional vacancies, which accounted for 5.3% of the UK’s total of 226,708 vacancies. Scotland’s job market has seen a modest year-on-year increase of 0.5%, significantly lagging behind the UK’s national average growth of 2.5%. This slower growth follows a sharp decline in 2023 when vacancies in Scotland dropped by 29.5%.
Furthermore, February 2024 marked the peak period for job postings in Scotland, with 2,035 vacancies, whereas April saw the lowest at 1,577. Overall, these figures highlight a more subdued recovery in Scotland compared to the broader UK trend, reflecting ongoing challenges in the region’s job market. This is according to the latest UK Labour Market Trends report by APSCo and labour market data analytics firm Vacancysoft.
IT Leads Scotland’s Job Market
The Professional Services industry is expected to dominate Scotland’s job market in 2024, holding an 18.3% share of all vacancies, reflecting an 18.3% year-on-year (YoY) growth to approximately 4,010 vacancies. This marks a significant rise from its 13.4% share in the previous year, underscoring its growing influence. The Technology, Media & Telecoms (TMT) industry is projected to see the second-largest growth, with a 25.3% surge, increasing its share to 14.6%. In contrast, the Financial Services sector is forecasted to decline by 22.5%, marking a second consecutive year of negative growth. The Real Estate & Construction industry is expected to grow modestly to 16.2%.
The Professional Services dominates across industries
By sector, Technology continues to be the largest in terms of vacancies and just as importantly, has seen a significant uplift this year compared to last, with volumes increasing by 26.7% last year. Recruitment in Professional Services is also up significantly, with volumes increasing by 20% on last year. Another area which has seen a significant surge though is the Real Estate Industry, up by 17%.
Conversely, the Banking sector continues to contract, with a 6.1% decline in vacancies from 2023, reflecting ongoing challenges. This downward trend in banking recruitment shows a 5.1% decrease in vacancies compared to last year.
Turner & Townsend Leads the Way
Turner and Townsend is projected to lead the top 20 companies in Scotland for 2024, with 782 vacancies and a 15.6% year-on-year (YoY) increase, solidifying its significant role in the market. Petrofac is expected to stand out with a remarkable 223% YoY increase in vacancies, making it a key company to watch closely. Similarly, Thermo Fisher Scientific Inc. is forecasted to grow substantially, with a 160.5% YoY increase, reaching 201 vacancies. In contrast, Barclays and NatWest Group are anticipated to see significant declines of 58.6% and 63.5%, respectively. However, Balfour Beatty is expected to continue its positive trend with a 129.0% increase, reinforcing its strong performance.
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