Scots unemployment falls to 3.7% as UK rises to 5%

Edinburgh's Princes Street

Unemployment in Scotland has fallen to 3.7%, according to the latest estimates from the UK’s Office for National Statistics (ONS).

The Scottish figure dropped by 0.1% between July and September.

The UK-wide unemployment rate rose to 5% over the same period.

Early seasonally adjusted estimates for October 2025 from HMRC Pay As You Earn Real Time Information indicate that there were 2.45 million payrolled employees in Scotland, a decrease of 0.6% (-16,000) compared with October 2024.

Scotland’s Deputy First Minister Kate Forbes said: “Despite economic challenges Scotland continues to have a lower unemployment rate than the UK as a whole.

“We are working with business to attract jobs and investment into Scotland’s local and regional economies. However, most of the powers to grow Scotland’s economy are reserved to the UK Parliament.

“The Chancellor needs to urgently prioritise economic growth in her Autumn Budget, including by revisiting the damaging decision to raise employer’s National Insurance contributions.”