Scotland's Labour Market Insights: July 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 74.3% in March to May 2026. 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, however the gap has typically been narrowing over time.

Figure 1: The employment rate for women in Scotland has been slowly increasing over time, from 67.8% in April 2004 to March 2005 to 72.1% in April 2025 to March 2026

Employment rates for persons aged 16 to 64 by sex, Scotland, year ending March 2005 to year ending March 2026

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

Shaded areas represent 95% confidence intervals around the estimates.

Data for Figure 1 can be obtained from Scotland's Labour Market Insights - Data tables – July 2026 released alongside this publication.

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 April 2006 to March 2007. This is due to higher numbers of people aged 16 to 24 being in education.

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

Employment rates for persons aged 16 to 64 by age group, Scotland, year ending March 2005 to year ending March 2026

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

Shaded areas represent 95% confidence intervals around the estimates.

Data for Figure 2 can be obtained from Scotland's Labour Market Insights - Data tables – July 2026 released alongside this publication.

Full-time/Part-time Employment (APS)

In April 2025 to March 2026, an estimated 1,994,000 people aged 16 and over were in full-time employment while 713,400 were in part-time employment.

Figure 3: In April 2025 to March 2026, an estimated 73.6% of those in employment worked full-time, while 26.4% of those in employment worked part-time

Proportion of employment for persons aged 16 years and over by work pattern, Scotland, year ending March 2005 to year ending March 2026

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

Data for Figure 3 can be obtained from Scotland's Labour Market Insights - Data tables – July 2026 released alongside this publication.

Notes:

1. Estimated proportions are based on those who responded to the survey question on whether they worked full-time or part-time.
2. Shaded areas represent the confidence intervals around the estimates.

Since April 2004 to March 2005, full-time employment as a percentage of all employment has decreased for men (an estimated 89.7% in April 2004 to March 2005 compared to 85.5% in April 2025 to March 2026) but increased for women (an estimated 58.3% in April 2004 to March 2005 compared to 61.4% in April 2025 to March 2026).

Figure 4: In April 2025 to March 2026, a higher proportion of men were in full-time employment compared to women (85.5% of men compared to 61.4% of women). A higher proportion of women worked part-time compared to men (38.6% compared to 14.5%)

Proportion of employment for men and women aged 16 years and over by work pattern, Scotland, April 2025 to March 2026

Source: Annual Population Survey, April 2025 to March 2026, ONS

Data for Figure 4 can be obtained from Scotland's Labour Market Insights - Data tables – July 2026 released alongside this publication.

Notes:

1. Estimated proportions are based on those who responded to the survey question on whether they worked full-time or part-time.
2. Error bars represent the confidence intervals around the estimates.

Self Employment (APS)

Figure 5: In April 2025 to March 2026, an estimated 11.1% of people in employment aged 16 and over were self employed (300,700 people)

Proportion of people in employment aged 16 years and above who are self-employed, Scotland, year ending March 2005 to year ending March 2026

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

Shaded areas represent the confidence intervals around the estimates.

Data for Figure 5 can be obtained from Scotland's Labour Market Insights - Data tables – July 2026 released alongside this publication.

The proportion of people who are self-employed has decreased compared to a year ago (an estimated 11.6% in April 2024 to March 2025), and it remains lower than before the pandemic.

As data sources rely on self-reported employment status from individuals responding to the survey, it is difficult to identify whether this reflects a genuine change in behaviour or simply a change in reporting. There are a number of factors that may have led self-employed workers to change their reported status without significant changes to their working patterns, including the introduction of the furlough scheme during the pandemic and tax changes in April 2021.

Since the start of the series consistently more men than women have reported being self-employed. In April 2025 to March 2026, an estimated 12.8% of men in employment were self-employed, compared to 9.4% of women. The proportion of women who were self-employed is the highest in the April to March time series.

Permanent Employees (APS)

Figure 6: In April 2025 to March 2026, an estimated 94.8% employees aged 16 and over were employed on permanent contracts (2,270,900 employees)

Proportion of employees aged 16 years and over who are employed on a permanent contract, Scotland, year ending March 2005 to year ending March 2026

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

Data for Figure 6 can be obtained from Scotland's Labour Market Insights - Data tables – July 2026 released alongside this publication.

Notes:

1. Estimated proportions are based on those who responded to the survey question on whether their employment was permanent or non-permanent.
2. Shaded areas represent the confidence intervals around the estimates.

Public Sector Employment Statistics

In March 2026, 604,100 people were employed in the public sector in Scotland.  Employment in the public sector accounted for over one fifth (22.7%) of total employment in Scotland.

For further information, and the latest official estimates of public sector employment in Scotland, please refer to the Public Sector Employment in Scotland Statistics for 1st Quarter 2026.

Public Sector Employment (APS)

The APS is not the official source for estimates of public sector employment, as this tends to overestimate the level of employment in the public sector due to self-reporting. However, the APS can be used to provide estimates for the characteristics of people employed in the public sector.

Figure 7: In April 2025 to March 2026, an estimated 38.3% of women in employment were employed in the public sector, higher than the proportion of men (20.2%). This proportion has been consistently higher for women than men over the time series

Proportion of men and women in employment who are employed in the public sector, people aged 16 years and over, Scotland, year ending March 2005 to year ending March 2026

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

Shaded areas represent the confidence intervals around the estimates.

Data for Figure 7 can be obtained from Scotland's Labour Market Insights - Data tables – July 2026 released alongside this publication.

Underemployment (APS)

Underemployment refers to those who are in employment but who would prefer to work more hours in their current job (at their basic rate of pay), in an additional job or in a new job with longer hours to replace their current job. This provides a measure of underutilisation of labour.

Figure 8: In January to December 2025, an estimated 6.6% of those in employment aged 16 and over were underemployed. This proportion increased to a peak in 2012 before generally decreasing.

Proportion of persons aged 16 years and over in employment who are underemployed, Scotland, year ending December 2004 to year ending December 2025

Source: Annual Population Survey, January to December datasets, ONS

Shaded areas represent the confidence intervals around the estimates.

Data for Figure 8 can be obtained from Scotland's Labour Market Insights - Data tables – July 2026 released alongside this publication.

Figure 9: In January to December 2025, an estimated 6.7% of women were underemployed, compared to 6.4% of men. The proportion of women who are underemployed has been consistently higher than the proportion of men but the gap has typically been narrower in recent years

Proportion of men and women in employment who are underemployed, for persons aged 16 years and over, Scotland, year ending December 2004 to year ending December 2025

Source: Annual Population Survey, January to December datasets, ONS

Shaded areas represent the confidence intervals around the estimates.

Data for Figure 9 can be obtained from Scotland's Labour Market Insights - Data tables – July 2026 released alongside this publication.

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 June 2026 indicate that there were 2.45 million payrolled employees in Scotland, a decrease of 0.1% (down 2,000) compared with June 2025.  

Payrolled employees by age (HMRC PAYE RTI)

The latest available HMRC data published in July 2026 shows that annual change in payrolled employees varies by age. 

Of the estimated 2.45 million payrolled employees in Scotland in June 2026, 32.6% were aged 35 to 49 and 28.4% were aged 50 to 64.

The 65 and over and 35 to 49 age groups saw the largest increases in the estimated number of payrolled employees over the year to June 2026 (both up 7,000). The 25 to 34 and 50 to 64 age groups saw the largest decreases over this period (down 8,000 for the 25 to 34 age group and down 7,000 for the 50 to 64 age group).

The 65 and over age group saw the largest percentage increase over the year (up 7.4%). The under 18 age group saw the largest percentage decrease over the year (down 6.6%).

Figure 10: The 65 and over and 35 to 49 age groups saw the largest increases in payrolled employees since June 2025

Annual Change in Payrolled employees by age, Scotland, June 2025 to June 2026

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

Data for Figure 10 can be obtained from Earnings and employment from Pay As You Earn Real Time Information, seasonally adjusted data released on 21 July 2026.

Changes over the year are rounded to the nearest thousand.

Note: Early estimates for June 2026 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)

The latest available HMRC data published in May 2026 shows that annual change in payrolled employees varies by industry sector. 

Of the estimated 2.44 million payrolled employees in Scotland in April 2026, the highest numbers were employed in the Health and social work (15.5%), Wholesale and retail (13.4%), and Education (13.2%) industry sectors. The lowest numbers of payrolled employees were employed in the Energy production and supply (0.8%); Mining and quarrying (0.7%); Water supply, sewerage and waste (0.6%) and Households and extraterritorial organisations (0.3%) industries.

The Energy production and supply industry sector has shown the largest percentage growth in payrolled employees over the year to April 2026. Thirteen industry sectors showed a decrease over the year to April 2026.

Figure 11: The Energy sector has seen the largest percentage increase (2.4%) in payrolled employees since April 2025

Annual Percentage Change in Payrolled employees by industry sector, Scotland, April 2025 to April 2026

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

Data for Figure 11 can be obtained from Earnings and employment from Pay As You Earn Real Time Information, seasonally adjusted data released on 19 May 2026.

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

Notes: Based on early April 2026 estimates published in May 2026. April 2026 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 July 2026 with July 2025, will be published in August 2026.

Median earnings for payrolled employees (HMRC PAYE RTI)

The latest early estimates for June 2026 indicate that median monthly pay for payrolled employees in Scotland was £2,672, an increase of 4.7% 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 1.8% over the year to June 2026.

Figure 12: 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 June 2026

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

Data for Figure 12 can be obtained from Earnings and employment from Pay As You Earn Real Time Information, seasonally adjusted data released on 21 July 2026. Real earnings have been calculated using the Consumer Prices Index including owner occupiers' housing costs (CPIH) data released on 22 July 2026.