Scotland's Labour Market Insights: October 2024

People not in work

Unemployment rate (LFS)

International Labour Organisation (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 3.9 per cent in June to August 2024. Scotland's unemployment rate was slightly below the UK rate of 4.0 per cent.

Unemployment rate by length of time unemployed (APS)

In July 2023 to June 2024, an estimated 96,000 people aged 16 and over were unemployed in Scotland.

The majority of those were unemployed for a duration of less than 6 months (an estimated 65.0 per cent of unemployed people). This proportion decreased during the pandemic to 52.0 per cent in July 2021 to June 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. In July 2023 to June 2024, 22.5 per cent of unemployed people were estimated to be long-term unemployed.

Figure 8: The majority of unemployed people aged 16 and over have been unemployed for less than six months. In July 2023 to June 2024, the proportion who have been unemployed for 12 months or more is the lowest since July 2008 to June 2009.

Duration of unemployment for those aged 16 and over, Scotland, year ending June 2005 to year ending June 2024

Source: Annual Population Survey, July 2004-June 2005 to July 2023-June 2024 datasets, ONS

Shaded areas represent the confidence intervals around the estimates.

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 23.2 per cent in June to August 2024. Scotland's economic inactivity rate was above the UK rate of 21.8 per cent.

Economic Inactivity rate by reasons for inactivity (APS)

In July 2023 to June 2024, an estimated 786,300 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 July 2023 to June 2024, an estimated 32.0 per cent of inactive people aged 16 to 64 gave their reason for being inactive as “long-term sick or disabled”, the highest proportion since July 2005 to June 2006. This was higher than the UK proportion of 28.4 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 24.6 per cent of inactive people in July 2023 to June 2024). The proportion of inactive people who were students 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 inactivity and has typically been decreasing over time.

Figure 9: 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 July 2015 to June 2016, 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 June 2005 to year ending June 2024

Source: Annual Population Survey, July 2004-June 2005 to July 2023-June 2024 datasets, ONS

Notes:

1. ‘Other’ reason for being inactive includes those who are discouraged.
2. Shaded areas represent the confidence intervals around the estimates.

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 July 2023 to June 2024, an estimated 17.3 per cent (135,700) of inactive people aged 16 to 64 reported that they wanted to work – the lowest proportion in the July to June time series.

Figure 10: Proportion of inactive people aged 16 to 64 who want to work had been relatively constant over time. However since July 2016 to June 2017, the proportion has been gradually decreasing

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

Source: Annual Population Survey, July 2004-June 2005 to July 2023-June 2024 datasets, ONS

Shaded areas represent the confidence intervals around the estimates.