Scotland's Labour Market Insights: October 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 3.9% in June to August 2025. Scotland's unemployment rate was below the UK rate of 4.8% 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 July 2024 to June 2025, the estimated unemployment rate for men in Scotland was 4.3% and for women was 2.9%.

Figure 6: 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 July to June series

Unemployment rate estimates for persons aged 16 and over 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.

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

Unemployment rate estimates for persons aged 16 and over 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.

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 July 2024 to June 2025 remain robust
• we have moderate confidence in the July 2024 to June 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 July 2024 to June 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 July 2024 to June 2025, an estimated 101,000 people aged 16 and over were unemployed in Scotland.

Of those who were unemployed in July 2024 to June 2025 and their duration of unemployment was known, the majority were unemployed for less than six months (an estimated 56.5% of unemployed people). This proportion decreased during the pandemic to 52.0% in July 2021 to June 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 July 2024 to June 2025, 25.6% of unemployed people were estimated to be long-term unemployed.

Figure 8: 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 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.

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 July 2024 to June 2025 remain robust
• we have moderate confidence in the July 2024 to June 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 July 2024 to June 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 22.7% in June to August 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 July 2023 to June 2024.

Figure 9: The estimated economic inactivity rate for women in July 2024 to June 2025 was 26.6%, 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 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.

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 July 2012 to June 2013, 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 July 2015 to June 2016 but has remained relatively constant since then.

Figure 10: The estimated economic inactivity rate for those aged 16 to 24 in Scotland has been higher than any other age group since July 2012 to June 2013

Economic inactivity 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.

Economic Inactivity rate by reasons for inactivity (APS)

In July 2024 to June 2025, an estimated 802,400 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 July 2024 to June 2025, an estimated 35.2% of inactive people aged 16 to 64 gave their reason for being inactive as “long-term sick or disabled”, the highest proportion since the July to June time series began in July 2004 to June 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 23.2% of inactive people in July 2024 to June 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 11: 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 the highest across the July to June time series

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

Source: Annual Population Survey, July to June 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 July 2024 to June 2025 remain robust
• we have high confidence in the July 2024 to June 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 July 2024 to June 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 July 2024 to June 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 July 2024 to June 2025, an estimated 17.0% (136,100) of inactive people aged 16 to 64 reported that they wanted to work.

Figure 12: 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 gradually decreasing in recent years

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