Scotland's Labour Market Insights: July 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 4.7% in March to May 2026. Scotland's unemployment rate was below the UK rate of 4.9% 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 2025 to March 2026, the estimated unemployment rate for men in Scotland was 4.3% and for women it was 3.7%.

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 2026

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

Shaded areas represent 95% confidence intervals around the estimates.

Data for Figure 13 can be obtained from Scotland's Labour Market Insights - Data tables – July 2026 released alongside this publication.

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 consistently 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 2026

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

Shaded areas represent 95% confidence intervals around the estimates.

Data for Figure 14 can be obtained from Scotland's Labour Market Insights - Data tables – July 2026 released alongside this publication.

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 2025 to March 2026 remain robust
• we have moderate confidence in the April 2025 to March 2026 unemployment estimate for those aged 16-24, indicating that this 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 2025 to March 2026 unemployment estimate 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 April 2025 to March 2026, an estimated 112,600 people aged 16 and over were unemployed in Scotland.

Of those who were unemployed in April 2025 to March 2026, the majority were unemployed for less than six months (an estimated 60.6% 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 2025 to March 2026, 22.9% 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 2026

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

Data for Figure 15 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 how long they had been unemployed.
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 duration of unemployment estimates for April 2025 to March 2026 remain robust
• we have high confidence in the April 2025 to March 2026 estimate for those unemployed for 6 months or less, indicating that this estimate 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 limited confidence in the April 2025 to March 2026 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 21.8% in March to May 2026. Scotland's economic inactivity rate was above the UK rate of 20.9%.

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 has typically been narrowing over time.

Figure 16: The economic inactivity rate for women in Scotland in April 2025 to March 2026 was estimated at 25.1%, higher than the inactivity rate for men at 19.3%

Economic inactivity 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 16 can be obtained from Scotland's Labour Market Insights - Data tables – July 2026 released alongside this publication.

Economic Inactivity rate by age (APS)

Economic inactivity in Scotland varies by age group. 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 2026

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

Shaded areas represent 95% confidence intervals around the estimates.

Data for Figure 17 can be obtained from Scotland's Labour Market Insights - Data tables – July 2026 released alongside this publication.

Economic Inactivity rate by reasons for inactivity (APS)

In April 2025 to March 2026, an estimated 776,100 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 April 2025 to March 2026, an estimated 34.2% of inactive people aged 16 to 64 gave their reason for being inactive as “long-term sick or disabled”, lower than the proportion in April 2024 to March 2025 (34.6%).

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 was the second most common reason for being inactive (an estimated 23.2% of inactive people in April 2025 to March 2026). The proportion of inactive people who were students had been gradually increasing over time but has been slowly decreasing in recent years.

“Retired” was the third most common reason reported for inactivity (an estimated 15.7% of inactive people). This proportion has increased compared to April 2024 to March 2025 (14.9%) and is now higher than the proporption of people who are inactive due to “looking after family/home” (14.5% of inactive people) for the first time in the April to March time series.

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 has typically been increasing since April 2014 to March 2015

Economic Inactivity for persons aged 16 to 64 by reason for inactivity, Scotland, year ending March 2005 to year ending March 2026

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

Data for Figure 18 can be obtained from Scotland's Labour Market Insights - Data tables – July 2026 released alongside this publication.

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 2025 to March 2026 remain robust
• we have high confidence in the April 2025 to March 2026 estimates for those who gave their reason for being inactive as ‘Student’, ‘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 2025 to March 2026 estimates for those who gave their reason for being inactive as ‘Looking after family / home’ and ‘Other (including discouraged)’ indicating 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 April 2025 to March 2026 estimate for those who gave their reason for being inactive as ‘Temporary sick’ indicating that this 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)

In April 2025 to March 2026, an estimated 19.3% (149,500) of inactive people aged 16 to 64 reported that they wanted to work, a higher proportion than a year ago.

Figure 19: The proportion of inactive people aged 16 to 64 who want to work had been relatively constant over time. The proportion has typically been decreasing since April 2013 to March 2014

Economic Inactivity for persons aged 16 to 64 by whether they want to work, 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 19 can be obtained from Scotland's Labour Market Insights - Data tables – July 2026 released alongside this publication.

Never worked (APS)

In January to December 2025, an estimated 283,400 people in Scotland aged 16 to 64 years had never had a paid job. This was an estimated 8.1% of all 16 to 64 year olds in Scotland.

Of those aged 16 to 64 who had never had a paid job and provided their education status, the majority were in full-time education (54.8%).

Figure 20: The proportion of people aged 16 to 64 who have never had a paid job had been gradually increasing to 2013 and has remained relatively constant since then

Proportion of people who have never had a paid job, for persons aged 16 to 64 years, Scotland, year ending December 2004 to year ending December 2025

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

Shaded areas represent 95% confidence intervals around the estimates.

Data for Figure 20 can be obtained from Scotland's Labour Market Insights - Data tables – July 2026 released alongside this publication.