Scotland's Labour Market Insights: October 2025

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 June to August 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 consistently been above the employment rate for women in Scotland. The gap was narrowing over time, but has widened since July 2023 to June 2024.

Figure 1: The estimated employment rate for women in Scotland has been slowly increasing over time, from 67.7% in July 2004 to June 2005 to 71.2% in July 2024 to June 2025

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

Source: Annual Population Survey, July to June 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 July 2005 to June 2006. This is due to higher numbers of people aged 16 to 24 being in education.

Figure 2: The estimated employment rate for those aged 16 to 24 in Scotland has been lower than any other age group since July 2005 to June 2006

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

Source: Annual Population Survey, July to June datasets, ONS

Shaded areas represent 95% confidence intervals around the estimates.

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 September 2025 indicate that there were 2.45 million payrolled employees in Scotland, a decrease of 0.4% (-11,000) compared with September 2024.  

Payrolled employees by age (HMRC PAYE RTI)

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

Of the estimated 2.45 million payrolled employees in Scotland in September 2025, 32.4% were aged 35 to 49 and 28.6% 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 September 2025 (up 5,000). 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 3.8%). The under 18 age group saw the largest percentage decrease over the year (down 6.4%).

Figure 3: The 35 to 49 age group saw the largest increase in payrolled employees since September 2024

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

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

Data for Figure 3 can be obtained from Earnings and employment from Pay As You Earn Real Time Information, seasonally adjusted data released on 14 October 2025.

Changes over the year are rounded to the nearest thousand.

Note: Early estimates for September 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 August 2025 shows that annual change in payrolled employees varies by industry sector. 

Of the estimated 2.45 million payrolled employees in Scotland in July 2025, the highest numbers were employed in the Health and social work (15.3%), Wholesale and retail (13.4%), and Education (13.3%) 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 (0.8%), and Energy production and supply (0.8%) industries.

The Energy production and supply industry sector has shown the largest percentage growth in payrolled employees over the year to July 2025. Twelve industry sectors showed a decrease over the year to July 2025.

Figure 4: The Energy sector has seen the largest percentage increase in payrolled employees since July 2024

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

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

Data for Figure 4 can be obtained from Earnings and employment from Pay As You Earn Real Time Information, seasonally adjusted data released on 12 August 2025.

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

Notes: Based on early July 2025 estimates published in August 2025. July 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 October 2025 with October 2024, will be published in November 2025.

Median earnings for payrolled employees (HMRC PAYE RTI)

Early estimates for September 2025 indicate that median monthly pay for payrolled employees in Scotland was £2,600, an increase of 5.9% 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 1.7% over the year to September 2025.

Figure 5: 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 September 2025 

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