29 July 2026
Scotland’s labour market insights highlight changing workforce trends
The Scottish Government has published Scotland’s Labour Market Insights: July 2026, highlighting the long-term trends that will influence employment, skills and workforce planning across the country.
While Scotland continues to have a resilient labour market, the report notes that demographic change, advances in technology and artificial intelligence, and the transition to a net zero economy are reshaping workforce demand. Employers are expected to place increasing value on higher-level skills, adaptability and lifelong learning.
Recent labour market data shows there were around 2.45 million payrolled employees in Scotland in June 2026. Median monthly pay reached £2,672, representing a 4.7% increase compared with the previous year. The employment rate stood at 74.3%, while unemployment was 4.3% and economic inactivity was 22.2%. Scotland’s unemployment rate remained below the UK average of 4.9%, although the latest figures indicate some softening in the labour market, with unemployment and economic inactivity increasing over the year and the employment rate falling.
The report also highlights continuing labour and skills shortages across sectors including health and social care, construction, digital technology, engineering and renewable energy. An ageing population and changing workforce demographics mean employers are likely to face increasing recruitment challenges over the coming decade.
As occupations evolve and new industries emerge, careers practitioners have a key role in supporting people to understand transferable skills, identify opportunities and navigate career transitions throughout their working lives.
Overall, the report presents a picture of a labour market in transition. Continued collaboration between government, employers, education providers and the career development profession will be essential to ensure Scotland has the skilled, adaptable workforce needed to support future economic growth.
Read more about the latest labour market insights for Scotland.
While Scotland continues to have a resilient labour market, the report notes that demographic change, advances in technology and artificial intelligence, and the transition to a net zero economy are reshaping workforce demand. Employers are expected to place increasing value on higher-level skills, adaptability and lifelong learning.
Recent labour market data shows there were around 2.45 million payrolled employees in Scotland in June 2026. Median monthly pay reached £2,672, representing a 4.7% increase compared with the previous year. The employment rate stood at 74.3%, while unemployment was 4.3% and economic inactivity was 22.2%. Scotland’s unemployment rate remained below the UK average of 4.9%, although the latest figures indicate some softening in the labour market, with unemployment and economic inactivity increasing over the year and the employment rate falling.
The report also highlights continuing labour and skills shortages across sectors including health and social care, construction, digital technology, engineering and renewable energy. An ageing population and changing workforce demographics mean employers are likely to face increasing recruitment challenges over the coming decade.
As occupations evolve and new industries emerge, careers practitioners have a key role in supporting people to understand transferable skills, identify opportunities and navigate career transitions throughout their working lives.
Overall, the report presents a picture of a labour market in transition. Continued collaboration between government, employers, education providers and the career development profession will be essential to ensure Scotland has the skilled, adaptable workforce needed to support future economic growth.
Read more about the latest labour market insights for Scotland.
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