Scotland's Labour Market Insights: July 2024

People not in work

ILO Unemployment rate (LFS)

ILO Unemployment measures those who are available for and actively seeking employment.

The unemployment rate for people aged 16 years and over in Scotland based on the ONS Labour Force Survey was estimated at 4.9 per cent in March to May 2024. Scotland's unemployment rate was above the UK rate of 4.4 per cent.

Unemployment rate by length of time unemployed (APS)

In April 2023 to March 2024, an estimated 101,400 people aged 16 and over were unemployed in Scotland.

The majority of those were unemployed for a duration of less than 6 months (66.5 per cent). This proportion decreased during the pandemic to 48.0 per cent in April 2021 to March 2022, indicating that at that time there were more people unemployed for longer durations.

Being unemployed for 12 months or more is often considered long-term unemployed. 20.3 per cent of unemployed people in April 2023 to March 2024 were estimated to be long-term unemployed.

Figure 12: The majority of people aged 16 and over who were unemployed have been unemployed for less than six months. In April 2023 to March 2024 the level unemployed for 12 months or more is the lowest in the series.

Unemployment levels for people aged 16 and over, by duration of unemployment, Scotland, year ending March 2005 to year ending March 2024

Source: Annual Population Survey, April to March datasets, ONS

ILO Economic Inactivity rate (LFS)

Economic inactivity measures those who are neither in work, available for work or actively seeking work.

The economic inactivity rate for people aged 16 to 64 years in Scotland based on the ONS Labour Force Survey was estimated at 23.3 per cent in March to May 2024. Scotland's economic inactivity rate was above the UK rate of 22.1 per cent.

Economic Inactivity rate by reasons for inactivity (APS)

In April 2023 to March 2024, an estimated 791,300 people aged 16 to 64 were economically inactive in Scotland.

“Long-term sick or disabled” was the main reason given for being inactive in Scotland. In April 2023 to March 2024, 32.7 per cent of inactive people aged 16 to 64 gave their reason for being inactive as “long-term sick or disabled”, the highest proportion in the series. This is higher than the UK proportion of 27.6 per cent.

The proportions of inactive people who were long-term sick or disabled had been gradually decreasing over time. However, it has been increasing in recent years for both Scotland and the UK.

Being a student is the second most common reason for being inactive (an estimated 24.8 per cent of inactive people in April 2023 to March 2024). The proportion had been gradually increasing over time but has remained relatively constant in recent years.

“Looking after family/home” is the third most common reason reported for inactivty and has typically been decreasing over time.

Figure 13: Proportion of people aged 16 to 64 who are inactive and gave their reason for being inactive as long-term sick or disabled had generally been decreasing over time while the proportion of students had been gradually increasing. Since April 2017 to March 2018, the proportion of students was relatively constant while long-term sick or disabled had been gradually increasing

Economic Inactivity for persons aged 16 to 64 by reason for inactivity, Scotland, year ending March 2005 to year ending March 2024

Source: Annual Population Survey, April to March datasets, ONS

Note: ‘Other’ reason for being inactive includes those who are discouraged.

Economically Inactive people who want to work (APS)

The proportion of inactive people aged 16 to 64 who want to work had been relatively constant over time but has decreased in recent years. In April 2023 to March 2024, an estimated 16.5 per cent (130,700) of inactive people aged 16 to 64 reported that they wanted to work – the lowest proportion in the April to March time series.

Figure 14: Proportion of inactive people aged 16 to 64 who want to work had been relatively constant over time. However since April 2016 to March 2017, the proportion has been gradually decreasing

Economic Inactivity for persons aged 16 to 64 by whether they want to work, Scotland, year ending March 2005 to year ending March 2024

Source: Annual Population Survey, April to March datasets, ONS