Scotland’s unemployment rate has fallen slightly, with new data indicating ongoing resilience in the labour market despite broader economic uncertainty.
Figures from the Office for National Statistics (ONS) show that unemployment among people aged 16 and over stood at 3.7% between March and May 2025 – a decrease of 0.5 percentage points compared to the previous quarter. The rate remains below the UK average of 4.7%.
In total, there were 102,000 unemployed people in Scotland over the three-month period, while the employment rate among those aged 16 to 64 rose to 74.9% – up 0.6 percentage points from the previous quarter. The number of people in employment reached 2.67 million.
The Scottish Government’s own analysis of early HMRC figures for June 2025 estimated that approximately 2.45 million people were in payrolled employment.
Deputy First Minister Kate Forbes said:
“These figures show that the number of payrolled employees in Scotland remains high and median monthly pay is greater than the UK as a whole.
“The Scottish Government is focused on driving economic growth and investment, which are crucial to supporting jobs and prosperity.
“However, we need decisive action from the UK Government to boost growth. That’s why we are calling for a complete reversal of the damaging decision to raise employers’ national insurance contributions, which is hampering business confidence, investment and jobs.
“We are also investing £90 million in our employability services in 2025–26 to help more people into employment.”
Employment law expert Ann Frances Cooney, partner at DWF, said the figures reflect a labour market that has remained “relatively buoyant”.
“Scotland’s labour market shows continued resilience in an uncertain economic climate,” she said.
“The early seasonally adjusted estimates for June 2025 from HMRC Pay As You Earn Real Time Information indicate that median monthly pay for payrolled employees in Scotland was £2,546 – an increase of 5.4% compared with June 2024.
“With UK inflation unexpectedly jumping to 3.6% in June, employers are likely to face further pressure from employees to increase pay as prices continue to rise.”
Cooney added that several factors may shape the labour market in the months ahead.
“The imminent introduction of a raft of new worker rights is expected to influence employer behaviour. In addition, as businesses prepare to grapple with the financial impact of US tariffs, many are adopting a more cautious approach to recruitment, reassessing workforce strategies and reviewing internal policies to ensure compliance.”
