Scotland's Labour Market Insights: January 2026

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 3.7% in September to November 2025. Scotland's unemployment rate was below the UK rate of 5.1% for this period.

Unemployment rate by sex (APS)

The unemployment rate for men in Scotland has been consistently higher than the unemployment rate for women. In October 2024 to September 2025, the estimated unemployment rate for men in Scotland was 4.2% and for women was 3.2%.

Figure 8: Unemployment rate estimates are higher for men than for women in Scotland across the time series. The latest estimates for men and women are both close to historic lows in the October to September series

Unemployment rate estimates for persons aged 16 and over 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.

Unemployment rate by age (APS)

Across the series, the unemployment rate for those aged 16 to 24 has been consistently higher than the unemployment rate for any other age group. The rate has increased over recent years for this age group.

Figure 9: The unemployment rate estimate for those aged 16 to 24 in Scotland has been consistently higher than any other age group

Unemployment rate estimates for persons aged 16 and over 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.

Based on the current data quality rules and data confidence ratings we considered as part of our Quality Assessment of the Office for National Statistics Labour Force Survey and Annual Population Survey data for Scotland:

• the unemployment by age estimates for October 2024 to September 2025 remain robust
• we have moderate confidence in the October 2024 to September 2025 unemployment estimates for those aged 16-24, indicating that these estimates are suitable but incomplete measures of reality and conclusions can be drawn but limitations should be understood
• we have limited confidence in the October 2024 to September 2025 unemployment estimates for those aged 25-34, 35-49 and 50 and over, indicating that these estimates provide a restricted view on reality. These estimates should be considered alongside other more reliable indicators and limitations must be understood before drawing conclusions or making decisions

Unemployment rate by length of time unemployed (APS)

In October 2024 to September 2025, an estimated 104,700 people aged 16 and over were unemployed in Scotland.

Of those who were unemployed in October 2024 to September 2025 and their duration of unemployment was known, the majority were unemployed for less than six months (an estimated 57.9% of unemployed people). This proportion decreased during the pandemic to 49.7% 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 2024 to September 2025, 27.3% of unemployed people were estimated to be long-term unemployed.

Figure 10: The majority of unemployed people aged 16 and over have been unemployed for less than six months

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

Based on the current data quality rules and data confidence ratings we considered as part of our Quality Assessment of the Office for National Statistics Labour Force Survey and Annual Population Survey data for Scotland:

• the duration of unemployment estimates for October 2024 to September 2025 remain robust
• we have limited confidence in the October 2024 to September 2025 estimate for those unemployed for 6-12 months, indicating that this estimate provides a restricted view on reality. This should be considered alongside other more reliable indicators and limitations must be understood before drawing conclusions or making decisions

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 22.3% in September to November 2025. Scotland's economic inactivity rate was above the UK rate of 20.8%.

Economic Inactivity rate by sex (APS)

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

Figure 11: The estimated economic inactivity rate for women in October 2024 to September 2025 was 25.9%, higher than the inactivity rate for men in Scotland at 19.4%

Economic inactivity 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.

Economic Inactivity rate by age (APS)

Economic inactivity in Scotland varies by age group. As may be expected, the younger and older age groups have higher inactivity rates.

Since October 2011 to September 2012, the inactivity rate for 16 to 24 year olds has been consistently higher than the inactivity rate for any other age group. This is due to higher numbers of people aged 16 to 24 being in education.

The estimated inactivity rate for those aged 50 to 64 had gradually decreased until October 2014 to September 2015 but has remained relatively constant since then.

Figure 12: The estimated economic inactivity rate for those aged 16 to 24 in Scotland has been higher than any other age group since October 2011 to September 2012

Economic inactivity 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.

Economic Inactivity rate by reasons for inactivity (APS)

In October 2024 to September 2025, an estimated 790,000 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 2024 to September 2025, an estimated 33.8% of inactive people aged 16 to 64 gave their reason for being inactive as “long-term sick or disabled”. This is lower than a year ago; an estimated 34.1% of inactive people reported being inactive due to long-term sickness or disability in October 2023 to September 2024.

The proportions of inactive people who were long-term sick or disabled had been gradually decreasing over time. However, these proportions have generally been increasing in recent years.

Being a student is the second most common reason for being inactive (an estimated 23.4% of inactive people in October 2024 to September 2025). The proportion of inactive people who were students had been gradually increasing over time but has been slowly decreasing in recent years.

“Looking after family/home” is the third most common reason reported for inactivity and has typically been decreasing over time (an estimated 15.6% of inactive people in October 2024 to September 2025).

Figure 13: The estimated proportion of people aged 16 to 64 who are inactive and gave their reason for being inactive as long-term sick or disabled was lower than a year ago

Economic Inactivity estimates for persons aged 16 to 64 by reason for inactivity, Scotland, year ending September 2005 to year ending September 2025

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 95% confidence intervals around the estimates.

Based on the current data quality rules and data confidence ratings we considered as part of our Quality Assessment of the Office for National Statistics Labour Force Survey and Annual Population Survey data for Scotland:

• the economic inactivity by reason estimates for October 2024 to September 2025 remain robust
• we have limited confidence in the October 2024 to September 2025 estimate for those who gave their reason for being inactive as ‘Temporary sick’ indicating that the estimate provides a restricted view on reality. It should be considered alongside other more reliable indicators and limitations must be understood before drawing conclusions or making decisions.

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 2024 to September 2025, an estimated 18.1% (142,600) of inactive people aged 16 to 64 reported that they wanted to work.

Figure 14: The estimated proportion of inactive people aged 16 to 64 who want to work had been relatively constant over time. However the proportion has been generally decreasing in recent years

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