Almost a quarter of Scottish companies are experiencing a shortage of workers, according to new analysis of the labour market.

The data from the Business Insights and Conditions Survey and published by the Scottish Government shows that 23.1% of firms employing more than 10 staff are struggling to fill vacancies.

The worst affected was the administrative & support services sector (40.6%), followed by construction (30.8%).

A similar proportion (25%) of businesses were expecting to increase prices this month, up from 10% in December.

The main concern for businesses for January 2025 was falling demand of goods and services (17.2%), followed by taxation (14.8%).

However, 30.4% of businesses thought their performance would increase over the next 12 months while 11.6% expected performance to decrease.

The BIC survey for November had shown that 10.7% of firms north of the border could not meet demands because of the shortage of workers, above the national average of 8.7%.

The anti-independence group Scotland in Union said the Scottish Government should shoulder the blame for the worker shortage. Business groups say that Scotland’s higher income taxes and business rates erode the ability to recruit workers.

From April, anyone in Scotland earning over £30,000 will pay more in income tax than if they lived elsewhere in the UK.

Those earning between £43,663 to £75,000, who are taxed at the Scottish higher rate of 42%, will pay at least £1,500 more.

Any Scottish income taxpayer in the 45% advanced band, brought in from April 2024 for earnings between £75,001 and £125,140, will pay between £2,000 and £5,000 more.

Recruitment agencies say some senior candidates are requesting an additional “Scottish weighting” to their financial packages to compensate them for moving.

Holyrood ministers insist that their progressive tax regime ensures higher earners pay more to help support public finances.

They add that Scotland has a higher number of hospitality and public sector workers which have been adversely impacted by UK government policies, such as Brexit, although the increases in national insurance contributions and the living wage do not come into effect until April.

Finance Secretary Shona Robison agreed to match Westminster’s 40% business rates relief from April, but only for the hospitality sector. The Welsh government followed the Chancellor by extending to retail and leisure businesses.