17th June 2026
Vacancy levels are falling in Scotland, and the decline is even sharper in the Highlands.
The latest labour market data shows a clear cooling in vacancies across the UK, and rural regions like the Highlands are feeling the slowdown more intensely.
Vacancies across the UK have fallen to a five‑year low, with 705,000 vacancies, down 28,000 on the quarter.
While this is a national figure, the Highlands are experiencing a deeper and earlier contraction because of their structural characteristics:
Thin labour markets (fewer employers, fewer alternative jobs)
High reliance on small businesses, which saw the biggest vacancy drop nationally (‑19,000 in one quarter)
Dependence on retail, hospitality, and tourism, the sectors with the steepest vacancy declines
Seasonal hiring for summer 2026 is noticeably weaker than usual in Highland towns such as Wick, Thurso, Dingwall, and Fort William
This means that even a modest national decline translates into a significant local shock.
Scotland‑wide Labour Market Context
Scotland’s broader labour‑market indicators show no major changes in employment or unemployment, but vacancy‑related insights from the Scottish Government confirm a cooling trend:
Labour market reports highlight slowing payrolled employee growth and sector‑specific weakness, especially in consumer‑facing industries.
Claimant count data shows a slight rise in early 2026, consistent with fewer available vacancies.
While these reports don’t give vacancy counts directly, they align with the ONS‑reported national vacancy fall and the Highlands‑specific analysis.
Bottom Line
Vacancies are falling across Scotland — and the Highlands are being hit harder than the national averages suggest.
The combination of fewer employers, reliance on vulnerable sectors, and weaker seasonal hiring means the region feels the downturn more sharply.
the UK Government could take several actions that would increase vacancies, especially in Scotland and the Highlands. But each option comes with trade‑offs, and not all would create vacancies in the same way or at the same speed.
What could government realistically change?
Boosting house building
Opening up planning, accelerating approvals, or directly funding new housing would rapidly increase vacancies in:
Construction
Trades (plumbers, electricians, joiners)
Transport and logistics
Building materials manufacturing
Local services around new developments
In the Highlands, where housing shortages are severe, this would also unlock labour mobility — people can’t take jobs if they can’t find somewhere to live.
Impact: Fast, labour‑intensive, and vacancy‑creating.
Constraint: Requires planning reform and local authority capacity.
Reversing or slowing the North Sea oil & gas wind‑down
This would create vacancies in:
Offshore engineering
Drilling and extraction
Marine services
Fabrication yards (e.g., Nigg, Arnish)
Supply‑chain firms across the Highlands and Aberdeen
The sector has already seen a fall in investment due to uncertainty. Policy clarity alone — even without full reversal — would increase hiring.
Impact: Medium‑term job creation, strong regional effect.
Constraint: Political, environmental, and investment‑cycle considerations.
Accelerating renewable energy projects
This includes onshore wind, offshore wind, grid upgrades, and hydrogen.
Scotland — especially the Highlands — is already a hub.
Vacancies would rise in:
Engineering
Turbine maintenance
Port upgrades
Grid installation
Environmental surveying
Impact: Strong long‑term job creation, aligns with net‑zero goals.
Constraint: Grid bottlenecks and planning delays.
Tourism and hospitality stimulus
The Highlands depend heavily on tourism. Government could:
Cut VAT for hospitality
Fund VisitScotland campaigns
Improve transport links
Support seasonal worker schemes
This would increase vacancies in:
Hotels
Restaurants
Outdoor activity providers
Retail
Impact: Fast but seasonal.
Constraint: Housing shortages limit staffing.
Incentives for rural business investment
Targeted support could create vacancies in:
Food & drink
Forestry
Aquaculture
Digital and creative industries
Impact: Medium‑term, supports diversification.
Constraint: Requires infrastructure (transport, broadband).
The government has several levers that could increase vacancies, especially in the Highlands:
Housebuilding → fastest and broadest job creation
North Sea policy shift → strong regional impact
Renewables acceleration → long‑term, high‑skill vacancies
Tourism support → quick but seasonal
Rural investment incentives → steady, diversified growth
But the biggest constraint in the Highlands is housing. Without fixing that, even new vacancies can go unfilled.