Scotland records slight rise in unemployment – figures

Unemployment in Scotland has risen slightly in the past quarter, the latest figures indicate.

Office for National Statistics (ONS) data showed the unemployment rate for people aged 16 and over was 3.8% between October and December last year.

This was 0.5% up on the previous quarter but remains below the UK-wide rate of 4.4%.

There were 104,000 people aged 16 and over out of work in Scotland between October and December last year, according to the figures.

The employment rate north of the border between October and December for those aged 16 to 64 was 74.2% – 2,625,000 people – up 0.9% on the previous quarter but below the UK rate of 74.9%.

The rate of people classed as economically inactive in Scotland was 22.8% in the past quarter, down 1.2% on the previous quarter.

HMRC early estimates indicate there were 2.46 million payrolled employees in Scotland in January 2025, up 5,000 on the previous month but down 2,000 on January 2024.

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

“It’s encouraging to see payrolled employment remains close to record levels and Scotland has higher median monthly pay than the UK.

“To help more people into work our draft budget for 2025-26 allocates an extra £11 million for Scotland’s employability services.

“We are also rolling out enhanced employability support for disabled people by this summer to help address barriers to employment as part of our plans to tackle economic inactivity.”

Scottish Secretary Ian Murray said: “Having access to well-paid work is a right that should be afforded to all. That’s why we’re creating jobs and opportunities through our Plan for Change and truly making work pay to help raise living standards right across the UK.

“We are putting more money in people’s pockets – around 200,000 workers in Scotland are expected to benefit from a direct pay rise due to the increases to the national minimum and national living wages from April.

“Year on year, wages after inflation have grown at the fastest rates in three years since last July – worth an extra £20 a week after inflation.

“Help to find work will be more tailored with our wide-reaching Jobcentre reforms and by encouraging investment, we’re boosting businesses of all sizes to deliver growth.”