Scotland's Labour Market Insights: July 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 3.7% in March to May 2025. Scotland's unemployment rate was below the UK rate of 4.7% 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 April 2024 to March 2025, the estimated unemployment rate for men in Scotland was 3.8% and for women it was 2.8%.

Figure 13: Unemployment rates are higher for men than for women in Scotland across the time series

Unemployment rates for persons aged 16 and over by sex, Scotland, year ending March 2005 to year ending March 2025

Source: Annual Population Survey, April to March 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 sex estimates for April 2024 to March 2025 remain robust
• we have moderate confidence in the April 2024 to March 2025 unemployment by sex estimates, indicating that these estimates are suitable, but incomplete, measures of reality and conclusions can be drawn but limitations should be understood

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 14: Unemployment rate for those aged 16 to 24 in Scotland has been continually higher than any other age group

Unemployment rates for persons aged 16 and over by age group, Scotland, year ending March 2005 to year ending March 2025

Source: Annual Population Survey, April to March 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 April 2024 to March 2025 remain robust
• we have limited confidence in the April 2024 to March 2025 unemployment estimates for those aged 16-24, 35-49 and 50-64, indicating that this estimate provides a restricted view on reality. This estimate should be considered alongside other more reliable indicators and limitations must be understood before drawing conclusions or making decisions
• we have low confidence in the April 2024 to March 2025 unemployment estimate for those aged 25-34, indicating that caution should be taken when using this estimate to make decisions. Careful consideration of wider information is needed to put this estimate in context as it has a number of drawbacks and should not be taken as the principal estimate.

Unemployment rate by length of time unemployed (APS)

In April 2024 to March 2025, an estimated 91,500 people aged 16 and over were unemployed in Scotland.

Of those who were unemployed in April 2024 to March 2025, the majority were unemployed for less than six months (an estimated 58.2% of unemployed people). This proportion decreased during the pandemic to 48.0% in April 2021 to March 2022, 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 April 2024 to March 2025, 26.1% of unemployed people were estimated to be long-term unemployed.

Figure 15: The majority of unemployed people aged 16 and over have been unemployed for less than six months

Duration of unemployment for those aged 16 and over, Scotland, year ending March 2005 to year ending March 2025

Source: Annual Population Survey, April to March 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 April 2024 to March 2025 remain robust
• we have moderate confidence in the April 2024 to March 2025 estimate for those unemployed for less than six months, indicating the estimate is a suitable, but incomplete, measure of reality and conclusions can be drawn but limitations should be understood
• we have limited confidence in the April 2024 to March 2025 estimates for those unemployed for 6-12 months, and for those unemployed for 12 months or more, indicating that these estimates provide a restricted view on reality. These 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 22.2% in March to May 2025. Scotland's economic inactivity rate was above the UK rate of 21.0%.

Economic Inactivity rate by sex (APS)

The inactivity rate for women in Scotland has consistently been above the inactivity rate for men in Scotland. The gap was narrowing over time, but has widened since April 2022 to March 2023.

Figure 16: The economic inactivity rate for women in Scotland in April 2024 to March 2025 was 26.4%, higher than the inactivity rate for men in Scotland at 20.3%

Economic inactivity rates for persons aged 16 to 64 by sex, Scotland, year ending March 2005 to year ending March 2025

Source: Annual Population Survey, April to March 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 April 2013 to March 2014, 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 April 2014 to March 2015 but has remained relatively constant since then.

Figure 17: Economic inactivity rate for those aged 16 to 24 in Scotland has been higher than any other age group since April 2013 to March 2014

Economic inactivity rates for persons aged 16 to 64 by age group, Scotland, year ending March 2005 to year ending March 2025

Source: Annual Population Survey, April to March 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 economic inactivity by age estimates for April 2024 to March 2025 remain robust
• we have moderate confidence in the April 2024 to March 2025 economic inactivity estimate for those aged 25-34, indicating this estimate is a suitable, but incomplete, measure of reality and conclusions can be drawn but limitations should be understood

Economic Inactivity rate by reasons for inactivity (APS)

In April 2024 to March 2025, an estimated 812,200 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 April 2024 to March 2025, an estimated 34.6% of inactive people aged 16 to 64 gave their reason for being inactive as “long-term sick or disabled”, the highest proportion since the in the April to March time series began in April 2004 to March 2005.

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

Being a student is the second most common reason for being inactive (an estimated 23.5% of inactive people in April 2024 to March 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 15.5% of inactive people).

Figure 18: The proportion of people aged 16 to 64 who are inactive and gave their reason for being inactive as long-term sick or disabled was the highest across the April to March time series

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

Source: Annual Population Survey, April to March 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 April 2024 to March 2025 remain robust
• we have high confidence in the April 2024 to March 2025 estimates for those who gave their reason for being inactive as ‘Student’, ‘Looking after family/home’, ‘Long-term sick or disabled’ and ‘Retired’ indicating the estimates can be used to draw accurate conclusions. There is substantial trust in the information presented, which is likely to provide a good reflection of reality
• we have moderate confidence in the April 2024 to March 2025 estimate for those who gave their reason for being inactive as ‘Other (including discouraged)’ indicating the estimate is a suitable, but incomplete, measure of reality and conclusions can be drawn but limitations should be understood
• we have limited confidence in the April 2024 to March 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 April 2024 to March 2025, an estimated 17.0% (138,400) of inactive people aged 16 to 64 reported that they wanted to work.

Figure 19: The proportion of inactive people aged 16 to 64 who want to work had been relatively constant over time. However the proportion has been gradually decreasing in recent years

Economic Inactivity for persons aged 16 to 64 by whether they want to work, Scotland, year ending March 2005 to year ending March 2025

Source: Annual Population Survey, April to March datasets, ONS

Shaded areas represent 95% confidence intervals around the estimates.