Business Insights and Conditions in Scotland (wave 157): 11 June 2026

Employment Costs

In the period 18 May to 31 May 2026, businesses were asked how their staffing costs had changed over the last three months. An estimated 65.2% of businesses had increased staffing costs; this is up from 39.0% in February 2026, but down from 77.1% in May 2025. Large quarterly movements are typically seen at this time because of the change in the financial year.

Businesses were also asked how they expected staffing costs to change in the next three months. An estimated 35.6% of businesses were expecting staffing costs to increase in the next three months; down from 61.3% when businesses were asked in February 2026, and also down from 42.6% in May 2025.

Businesses were also asked how they planned to adapt to future changes in employment costs.

Figure 1: An estimated 42.4% of businesses plan to increase prices to adapt to any future rises in employment costs, with 40.4% planning to absorb increased employment costs within profit margins.

Estimated share of businesses by employment costs adaptation plans. Businesses not permanently stopped trading with 10+ employees and a presence in Scotland. Wave 157 (18 May to 31 May 2026).

Source: BICS weighted Scotland estimates - data to Wave 157 from the Scottish Government. For Figure 1 data see table ‘EmploymentCosts’.