Scotland's Labour Market Insights: February 2025

People in work

Employment rate (LFS)

The employment rate (the proportion of people aged 16 to 64 in work) in Scotland based on the ONS Labour Force Survey was estimated at 74.1 per cent in September to November 2024. Scotland's employment rate was below the UK rate of 74.8 per cent.

Employment rate by sex (APS)

The employment rate for men in Scotland has consistently been above the employment rate for women in Scotland, however the gap has narrowed in recent years.

Figure 1: The employment rate for women in Scotland has typically been increasing over time, from 68.0% in October 2004 to September 2005, to 71.6% in October 2023 to September 2024.

Employment rates for persons aged 16 to 64 by sex, Scotland and the UK, year ending September 2005 to year ending September 2024

Source: Annual Population Survey, October to September datasets, ONS

Shaded areas represent the confidence intervals around the estimates.

Earnings (ASHE)

Gross median weekly earnings for full-time men in Scotland have consistently been above the earnings for women in Scotland, however the gap has narrowed in recent years.

Figure 2: Median full-time weekly earnings have been gradually increasing over time for both men and women in Scotland

Gross median weekly earnings for full-time men and women, April 2014 to April 2024

Source: Annual Survey of Hours and Earnings (ASHE), ONS

Notes:

1. Estimates for 2024 data are provisional.

2. Employees are on adult rates (i.e. excluding those on youth, training and apprentice rates), pay is unaffected by absence unless furloughed

3. Full-time is defined as employees working more than 30 paid hours per week (or 25 or more for the teaching professions).

4. Discontinuity in 2021 is due to change in occupational coding from SOC 2010 to SOC 2020.

5. Due to methodological changes, data for 2023 and 2024 might not be directly comparable to data for 2022 and earlier years.

6. Data for 2020 and 2021 are subject to more uncertainty and should be treated with caution because of the impact of the coronavirus (COVID-19) pandemic on the data and collection.

Real Living Wage (ASHE)

The following analysis is based on the real living wage rate of £12.00 in 2024. Please see the Living Wage Foundation for more information on how this is calculated.

An estimated 11.4% of employees aged 18 and over earned less than the real living wage in 2024.

Figure 3: In 2024, the proportion of employees earning less than the Real Living Wage was higher for women (12.7%) compared with men (10.0%) and for young people aged 18-24 years (36.2%) compared with other age groups

Proportion of employees (18+) earning less than the Real Living Wage by sex and age group, Scotland, 2024

Source: Scottish Government Analysis of Annual Survey of Hours and Earnings (ASHE), ONS

Notes:

1. Estimates for 2024 data are provisional.

2. Employees are on adult rates (i.e. excluding those on youth, training and apprentice rates) and pay is unaffected by absence

3. Statistical robustness - all estimates are considered precise except the estimate for 25-34 year olds which is considered of reasonable quality

For further information, and the latest official estimates of earnings, the gender pay gap and Real Living Wage for employees in Scotland from the ONS Annual Survey of Hours and Earnings (ASHE), please visit: Annual survey of hours and earnings: 2024 - gov.scot

Payrolled Employees (HMRC PAYE RTI)

This information is based on experimental monthly estimates of paid employees and their pay from HM Revenue and Customs’ (HMRC’s) Pay As You Earn (PAYE) Real Time Information (RTI) data.

Early seasonally adjusted estimates for December 2024 indicate that there were 2.45 million payrolled employees in Scotland, a decrease of 0.5 per cent (-11,000) compared with December 2023.  

Payrolled employees by age (HMRC PAYE RTI)

The latest available HMRC data published in January 2025 shows that payrolled employee growth varies by age. 

Of the 2.45 million payrolled employees in Scotland in December 2024, 32.2 per cent were aged 35 to 49 and 28.8 per cent were aged 50 to 64.

The 65 and over age group has seen the largest percentage growth in payrolled employees over the year to December 2024. The under 18 age group has seen the largest percentage decrease over this period.

Figure 4: The 65 and over age group has seen the largest percentage increase in payrolled employees since December 2023

Annual Percentage Change in Payrolled employees by age, Scotland, December 2023 to December 2024

Source: PAYE RTI, all age groups, seasonally adjusted, HMRC

Note: Early estimates for December 2024 are provided to give an indication of the likely level of payrolled employees as well as their median pay in the latest period. The figures are based on around 85% of information being available. They are considered of lower quality and may be subject to revision in next month's release when between 98% to 99% of data will be available.

Payrolled employees by industry (HMRC PAYE RTI)

The latest available HMRC data published in November 2024 shows that payrolled employee growth varies by industry sector. 

Of the 2.46 million payrolled employees in Scotland in October 2024, the highest numbers were employed in the Health and social work (15.3%); Education (13.5%) and Wholesale and retail (13.4%) industry sectors. The lowest numbers of payrolled employees were employed in the Mining and quarrying (0.8%); Energy, production and supply (0.7%); Water supply, sewerage and waste (0.6%) and Households and extraterritorial organisiations (0.3%) industries.

The Energy, production and supply industry sector has shown the largest percentage growth in payrolled employees over the year to October 2024. Ten industry sectors showed a decrease over the year.

Figure 5: The Energy sector has seen the largest percentage increase in payrolled employees since October 2023

Annual Percentage Change in Payrolled employees by industry sector, Scotland, October 2023 to October 2024

Source: PAYE RTI, all industries, seasonally adjusted, HMRC

Industry sectors are based on the ONS UK Standard Industrial Classification (SIC) codes.

Notes: Based on early October 2024 estimates published in November 2024. October 2024 estimates are based on around 85% of information available at the time of publication and may be subject to more significant revisions. Payrolled employees by industry sector is updated quarterly. The next estimates, comparing early estimates for January 2025 with January 2024, will be published in February 2025.

Median earnings for payrolled employees (HMRC PAYE RTI)

The latest early estimates for December 2024 indicate that median monthly pay for payrolled employees in Scotland was £2,485, an increase of 4.8 per cent in nominal terms compared to the same period the previous year.

Real median monthly pay for payrolled employees in Scotland, adjusted for inflation (using the Consumer Prices Index including owner occupiers' housing costs (CPIH)), has grown by 1.2 per cent over the year to December 2024.

Figure 6: Real pay for payrolled employees had remained relatively constant up until the pandemic. However, real pay in December 2024 was higher than at the start of the coronavirus pandemic

Median Real and Nominal Monthly Pay for payrolled employees, seasonally adjusted, Scotland, July 2014 to December 2024 

Source: PAYE RTI, all industries, seasonally adjusted, HMRC and CPIH, ONS