Unemployment in Scotland: Understanding the Trends

Scotland's unemployment rate has been a topic of interest for many years. According to official statistics, the country's unemployment rate has been steadily decreasing since 2014.

In 2020, Scotland's unemployment rate stood at 3.3%, which is lower than the UK average. This is a significant improvement from 2014, when the unemployment rate was 7.8%.

The decrease in unemployment can be attributed to various factors, including a growing economy and an increase in job opportunities.

The unemployment rate in Scotland has been a topic of interest in recent times. The latest figures show that the unemployment rate for people aged 16 and over was 4.3% in the three months from January to March 2025, an increase of 0.5% on the previous quarter.

This is lower than the UK average of 4.5%. The number of people out of work in Scotland has increased, with 119,000 adults in Scotland out of work between January and March.

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The employment rate in Scotland also rose by 0.2% to 74.3%, but this 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%.

In contrast, unemployment in Scotland saw a small decrease in the last quarter, with the unemployment rate for individuals aged 16 and over standing at 3.7% from March to May this year. This represents a 0.5% decline from the previous quarter and is lower than the overall UK rate of 4.7%.

The Scottish Government has been working to build a more resilient economy, with Deputy First Minister Kate Forbes stating that work must be done to boost growth and create jobs. She also emphasized the importance of revisiting the budget and taking action to unleash Scotland's economic potential.

Here are some key statistics on unemployment in Scotland:

The number of people out of work in Scotland has ranged from 105,000 to 119,000 in recent quarters, with the most recent figure being 119,000.

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Employment in Scotland has been on the rise, with an employment rate of 74.3% from December 2024 to February 2025, a 0.2% increase from the previous quarter.

This is a bit of a mixed bag, as the UK rate is still higher at 75.1%. The estimated economic activity rate in Scotland was down 0.5% in that period to 22.4%, which is lower than the UK rate of 21.4%.

Wages in Scotland rose by 5.3% over that time to £2,508 a month, which is higher than the 4.8% growth in England. The claimant count also rose by 3.6% over the past year, with a claimant count unemployment rate in March 2025 of 3.8%.

The Scottish Government is committed to getting more people into work, and their draft Budget includes £90 million for employability services.

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The UK government has been providing comprehensive coronavirus support packages to help people and businesses through this unprecedented pandemic. These packages have saved nearly 800,000 jobs across Scotland.

The support packages include VAT deferral, company loans, and Universal Credit, which have helped people and businesses get through this difficult time. The UK government has also given £3.8bn to Holyrood to help tackle the crisis.

The furlough scheme has worked well in avoiding a sharp surge in unemployment, but it has come at a very high cost to the government. The scheme is expected to be withdrawn and ended by the start of November.

More than three quarters of a million people in Scotland are being supported by the various UK government furlough schemes. This is a significant number, and it highlights the importance of these schemes in supporting people through the pandemic.

Dr Stuart McIntyre, head of research at the Fraser of Allander Institute, has warned that the unemployment rate in Scotland is likely to rise substantially in the coming months. He has also emphasized the need for both the UK and Scottish governments to be prepared with support measures for those made unemployed.

Protecting jobs must be a top priority, especially in Scotland where the unemployment figures are concerning. Liz Cameron, chief executive of the Scottish Chambers of Commerce, agrees.

The furlough scheme in Scotland needs a flexible approach to effectively address the jobs crisis. The chancellor is being called upon to extend the scheme further for the hardest hit sectors such as hospitality and tourism.

These sectors are at greatest risk of a jobs crisis, which will disproportionately affect young people and the low paid.

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