Unemployment in Scotland increases slightly

Unemployment in Scotland rose slightly in the last quarter, according to the latest figures.

Data from the Office for National Statistics (ONS) shows the unemployment rate for people aged 16 and over was 3.7% between November 2024 and January 2025.

This was 0.1% up on the previous quarter but below the UK-wide rate of 4.4%.

There were 103,000 people aged 16 and over out of work in Scotland in the latest quarter, according to the figures.

The employment rate in Scotland for those aged 16 to 64 was 74.1%, which was up 0.9% on the previous quarter.

The UK-wide employment rate for those in that age range was 75%, a 0.1% increase on the previous quarter.

The figures show some 2,633,000 people aged 16 and over in Scotland were in employment between November and January.

Scottish Government analysis found HMRC early estimates show there were 2.46 million payrolled employees in Scotland in February 2025.

This was similar to the number of payrolled employees in January 2025 but slightly lower than in the previous year – down 3,000 employees from February 2024.

Deputy First Minister Kate Forbes said: “These figures indicate that Scotland’s labour market remains robust despite a challenging economic environment.

“It’s encouraging to see the number of payrolled employees is close to record levels.

“We are working to drive growth and investment. This includes securing major investments in recent weeks to expand offshore wind facilities across Scotland, supporting green jobs for the future.

“To boost economic growth our budget for 2025-26 provides funding to grow businesses and almost triples capital investment in the offshore wind supply chain to £150 million.”

Scotland’s inactivity rate is higher than in the rest of the UK, and that needs to change

Scottish Secretary Ian Murray said: “Through our plan for change we are securing Britain’s future, delivering renewal by kick-starting economic growth and creating jobs and opportunities to put more money in people’s pockets.

“We’re ensuring jobs will be better paid, more secure and have better conditions – and the boost to the national living wage in April will mean a pay rise of £1,400 a year for hundreds of thousands of hard-working people in Scotland.

“We’ve seen year-on-year wages-after-inflation growing at their fastest rate in three years – worth an extra £1,000 a year on average in the pockets of working people.

“Scotland’s inactivity rate is higher than in the rest of the UK, and that needs to change.”

He added: “That’s why we’re overhauling Jobcentres and further reforms announced this week will support people who want to work to have the ‘right to try’ so people can apply for work without fear of immediate reassessment.

“Scotland needs both its governments to step up and we will work with the Scottish Government to create opportunities for people all over the UK.”