Employment and unemployment in Scotland rise at same time, figures show

Scotland’s employment and unemployment rates have both increased, according to the latest figures.

The estimated unemployment rate in Scotland for those aged 16 to 64 was 4.2% from December 2024 to February 2025, up 0.3% from the previous quarter. The overall UK rate is 4.4%.

At the same time, the nation’s employment rate rose by 0.2% to 74.3%, the Office for National Statistics found. That fell below the UK rate of 75.1%.

The estimated economic activity rate in Scotland was down 0.5% in that period to 22.4%. The same figure for the whole of the UK stood at 21.4%.

Meanwhile, figures from HMCR’s pay as you earn (PAYE) system for March show a decrease in the number of payrolled employed of 0.4% in March, compared to the same time the year before.

This compared to a 0.2% decrease across the UK.

The early, seasonally adjusted estimates also show that wages in Scotland rose by 5.3% over that time to £2,508 a month. In England, wages grew by 4.8%.

The claimant count also rose by 3.6% over the past year. The claimant count unemployment rate in March 2025 was 3.8%, compared with 4.7% for the UK as a whole.

Kate Forbes, the Deputy First Minister, said work must be done to build a more resilient economy in Scotland.

She said: “These figures indicate that Scotland’s unemployment rate remains relatively low despite a challenging economic environment.

“However, difficulties persist for those who are economically inactive.

“With the world changing around us, the UK Government needs to change, too, by revisiting its budget and taking action to create jobs and unleash Scotland’s economic potential.

“The UK Government can boost growth by pursuing closer trade ties with the European Union and reversing the decision to raise employers’ national insurance contributions.

“To build a more resilient economy, the First Minister and I are working with business leaders to develop measures which create jobs and drive growth.

“These will be included in our forthcoming programme for government, which publishes on May 6.”

Scotland Office Minister Kirsty McNeill said: “It is encouraging to see wages growing in Scotland but concerning that our economic inactivity rate remains higher than the rest of the UK, and underlines why both of Scotland’s Governments need to step up to support more people into work.

“Through the UK Government’s plan for change, we are working to kick-start economic growth, create jobs and put more money in people’s pockets.

“We’re ensuring jobs will be better paid, more secure and have better conditions – this month’s increase to the national minimum wage, means a well-deserved pay rise for up to 220,000 Scots, alongside the biggest improvements to workers’ rights in a generation through our Employment Rights Bill.”