Scotland's Labour Market Insights: February 2025

People not in work

Unemployment rate (LFS)

International Labour Organisation (ILO) Unemployment measures those who are available for and actively seeking employment.

The unemployment rate for people aged 16 years and over in Scotland based on the ONS Labour Force Survey was estimated at 3.8 per cent in September to November 2024. Scotland's unemployment rate was below the UK rate of 4.4 per cent.

Unemployment rate by sex (APS)

The unemployment rate for men in Scotland has consistently been above the unemployment rate for women. In October 2023 to September 2024, the estimated unemployment rate for men in Scotland was 3.7 per cent and for women it was 2.8 per cent.

Figure 7: Unemployment rates are historically higher for men than for women in Scotland

Unemployment rates for persons aged 16 and over by sex, Scotland, 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.

Unemployment rate by length of time unemployed (APS)

In October 2023 to September 2024, an estimated 89,400 people aged 16 and over were unemployed in Scotland.

The majority of those were unemployed for a duration of less than 6 months (an estimated 60.3 per cent of unemployed people). This proportion decreased during the pandemic to 49.7 per cent in October 2020 to September 2021, indicating that at that time there were more people unemployed for longer durations.

Being unemployed for 12 months or more is often considered long-term unemployed. In October 2023 to September 2024, 23.0 per cent of unemployed people were estimated to be long-term unemployed.

Figure 8: The majority of unemployed people aged 16 and over have been unemployed for less than six months. In October 2023 to September 2024, the proportion who have been unemployed for 12 months or more is the lowest since October 2007 to September 2008.

Duration of unemployment for those aged 16 and over, Scotland, 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.

Economic Inactivity rate (LFS)

Economic inactivity measures those who are neither in work, available for work or actively seeking work.

The economic inactivity rate for people aged 16 to 64 years in Scotland based on the ONS Labour Force Survey was estimated at 22.9 per cent in September to November 2024. Scotland's economic inactivity rate was above the UK rate of 21.6 per cent.

Economic Inactivity rate by sex (APS)

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

Figure 9: The economic inactivity rate for women in Scotland in October 2023 to September 2024 was 26.3 per cent, higher than the inactivity rate for men in Scotland at 20.8 per cent

Economic inactivity 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.

Economic Inactivity rate by reasons for inactivity (APS)

In October 2023 to September 2024, an estimated 818,100 people aged 16 to 64 were economically inactive in Scotland.

“Long-term sick or disabled” was the main reason given for being inactive in Scotland. In October 2023 to September 2024, an estimated 34.1 per cent of inactive people aged 16 to 64 gave their reason for being inactive as “long-term sick or disabled”, the highest proportion in the time series beginning in October 2004 to September 2005. This was higher than the UK proportion of 28.7 per cent.

The proportions of inactive people who were long-term sick or disabled had been gradually decreasing over time. However, it has been increasing in recent years for both Scotland and the UK.

Being a student is the second most common reason for being inactive (an estimated 23.8 per cent of inactive people in October 2023 to September 2024). The proportion of inactive people who were students had been gradually increasing over time but has remained relatively constant in recent years.

“Looking after family/home” is the third most common reason reported for inactivity and has typically been decreasing over time.

Figure 10: The proportion of people aged 16 to 64 who are inactive and gave their reason for being inactive as long-term sick or disabled had generally been decreasing over time while the proportion of students had been gradually increasing. Since October 2015 to September 2016, the proportion of students was relatively constant while long-term sick or disabled had been gradually increasing

Economic Inactivity for persons aged 16 to 64 by reason for inactivity, Scotland, year ending September 2005 to year ending September 2024

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

Notes:

1. ‘Other’ reason for being inactive includes those who are discouraged.
2. Shaded areas represent the confidence intervals around the estimates.

Economically Inactive people who want to work (APS)

The proportion of inactive people aged 16 to 64 who want to work had been relatively constant over time but has decreased in recent years. In October 2023 to September 2024, an estimated 16.6 per cent (135,500) of inactive people aged 16 to 64 reported that they wanted to work – the lowest proportion in the October to September time series.

Figure 11: Proportion of inactive people aged 16 to 64 who want to work had been relatively constant over time. However since October 2016 to September 2017, the proportion has been gradually decreasing

Economic Inactivity for persons aged 16 to 64 by whether they want to work, Scotland, 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.