Scotland's Labour Market Insights: January 2026

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 74.7% in September to November 2025. Scotland's employment rate was below the UK rate of 75.1%.

Employment rate by sex (APS)

The employment rate for men in Scotland has been consistently above the employment rate for women in Scotland. The gap had typically been narrowing over time, but has widened since October 2021 to September 2022.

Figure 1: The estimated employment rate for women in Scotland has been slowly increasing over time, from 68.0% in October 2004 to September 2005 to 71.7% in October 2024 to September 2025

Employment rate estimates for persons aged 16 to 64 by sex, Scotland, year ending September 2005 to year ending September 2025

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

Shaded areas represent 95% confidence intervals around the estimates.

Employment rate by age (APS)

Employment in Scotland varies by age group. As may be expected, younger and older age groups have lower employment rates.

The employment rate for 16 to 24 year olds has been consistently lower than the employment rate for any other age group since October 2006 to September 2007. This is due to higher numbers of people aged 16 to 24 being in education and therefore economically inactive.

Figure 2: The estimated employment rate for those aged 16 to 24 in Scotland has been lower than any other age group since October 2006 to September 2007

Employment rate estimates for persons aged 16 to 64 by age group, Scotland, year ending September 2005 to year ending September 2025

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

Shaded areas represent 95% 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.  In nominal terms, median gross full-time weekly earnings for women increased by 3.3% over the year to £724.50, compared with an increase of 5.8% for men to £810.80. In real terms, median gross full-time weekly earnings for women decreased by 0.8% over the year, compared with an increase of 1.5% for men.

Figure 3: In nominal terms, median full-time weekly earnings have been gradually increasing over time for both men and women in Scotland

Gross median weekly earnings in nominal terms for full-time men and women, April 2014 to April 2025

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

Notes:

1. Estimates for 2025 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 onwards 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 £12.60. Please see the Living Wage Foundation for more information on how this is calculated.

An estimated 11.3% of employees aged 18 and over earned less than the real living wage in 2025.

Figure 4: In 2025, the proportion of employees earning less than the Real Living Wage was higher for women (12.0%) compared with men (10.5%) and for young people aged 18-24 years (38.3%) compared with other age groups

Proportion of employees (18+) earning less than the Real Living Wage by sex and age group, Scotland, 2025

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

Notes:

1. Estimates for 2025 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 estimates for 25 to 34 year olds and 35 to 49 year olds which are 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 2025 - gov.scot

Payrolled Employees (HMRC PAYE RTI)

This information is based on 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 2025 indicate that there were 2.45 million payrolled employees in Scotland, a decrease of 0.4% (-9,000) compared with December 2024.  

Payrolled employees by age (HMRC PAYE RTI)

HMRC data published in December 2025 shows that annual change in payrolled employees varies by age. 

Of the estimated 2.45 million payrolled employees in Scotland in December 2025, 32.5% were aged 35 to 49 and 28.5% were aged 50 to 64.

The 35 to 49 age group saw the largest increase in the estimated number of payrolled employees over the year to December 2025 (up 7,000). The 25 to 34 and 50 to 64 age groups saw the largest decreases over this period (each down 8,000).

The 65 and over age group saw the largest percentage increase over the year (up 4.6%). The under 18 age group saw the largest percentage decrease over the year (down 6.3%).

Figure 5: The 35 to 49 age group saw the largest increase in payrolled employees since December 2024

Annual Change in Payrolled employees by age estimates, Scotland, December 2024 to December 2025

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

Data for Figure 5 can be obtained from Earnings and employment from Pay As You Earn Real Time Information, seasonally adjusted data released on 20 January 2026.

Changes over the year are rounded to the nearest thousand.

Note: Early estimates for December 2025 are provided to give an indication of the likely level of payrolled employees 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)

HMRC data published in October 2025 shows that annual change in payrolled employees varies by industry sector. 

Of the estimated 2.45 million payrolled employees in Scotland in October 2025, the highest numbers were employed in the Health and Social Work (15.3%), Wholesale and Retail (13.4%), and Education (13.2%) industry sectors. The lowest numbers of payrolled employees were employed in the Households and Extraterritorial organisations (0.3%), Water Supply, Sewerage and Waste (0.7%), Mining and Quarrying (0.7%), and Energy Production and Supply (0.8%) industries.

The Finance and Insurance sector saw the largest growth in the number of payrolled employees over the year (up 2,000). The Accomodation and Food Services sector saw the largest decrease in the number of payrolled employees (down 6,000).

The Energy Production and Supply industry sector has shown the largest percentage growth in payrolled employees over the year to October 2025. Eleven industry sectors showed a decrease over the year to October 2025.

Figure 6: The Energy sector has seen the largest percentage increase in payrolled employees since October 2024

Annual Percentage Change in Payrolled employees by industry sector estimates, Scotland, October 2024 to October 2025

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

Data for Figure 6 can be obtained from Earnings and employment from Pay As You Earn Real Time Information, seasonally adjusted data released on 13 November 2025.

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

Notes: Based on early October 2025 estimates published in November 2025. October 2025 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 data is updated quarterly. The next estimates, comparing early estimates for January 2026 with January 2025, will be published in February 2026.

Median earnings for payrolled employees (HMRC PAYE RTI)

Early estimates for December 2025 indicate that median monthly pay for payrolled employees in Scotland was £2,580, an increase of 4.2% 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)), grew by 0.6% over the year to December 2025.

Figure 7: Nominal pay for payrolled employees has increased steadily over time. Real pay for payrolled employees is above the pre-pandemic level.

Median Real and Nominal Monthly Pay for payrolled employees, seasonally adjusted, Scotland, July 2014 to December 2025 

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