Scotland experienced concurrent increases in both employment and unemployment between December 2024 and February 2025, according to the latest data from the Office for National Statistics (ONS).
The unemployment rate for individuals aged 16 to 64 rose by 0.3 percentage points to 4.2%, slightly below the UK’s overall rate of 4.4% during the same period.
Simultaneously, Scotland’s employment rate increased by 0.2 percentage points to 74.3%, though it remains below the UK average of 75.1%.
The economic inactivity rate in Scotland decreased by 0.5 percentage points to 22.4%, compared to the UK’s rate of 21.4%.
In March 2025, HMRC’s Pay As You Earn (PAYE) data indicated a 0.4% year-on-year decrease in the number of payrolled employees in Scotland, compared to a 0.2% decrease across the UK.
Despite this, early estimates suggest that average monthly wages in Scotland increased by 5.3% to £2,508, outpacing England’s wage growth of 4.8%.
The claimant count in Scotland rose by 3.6% over the past year, with the unemployment rate standing at 3.8% in March 2025, lower than the UK’s 4.7%.
Deputy First Minister Kate Forbes emphasised the need for a resilient economy, stating that while Scotland’s unemployment rate remains relatively low, challenges persist for those who are economically inactive.
She called on the UK Government to revisit its budget and take action to create jobs and unlock Scotland’s economic potential, suggesting closer trade ties with the European Union and reversing the decision to raise employers’ national insurance contributions.
Forbes also mentioned that the Scottish Government is collaborating with business leaders to develop measures aimed at job creation and economic growth, which will be detailed in the forthcoming programme for government, set to be published on May 6.
