26 September 2026
Scottish labour market weakens as inflation picks up
The latest Scottish Economic Bulletin highlights that Scotland’s economy remains mixed, with GDP up but business conditions remaining subdued. Inflation grew from 2.6% in June to 2.9% in July and is expected to grow in coming months with the ongoing effects of the energy price cap.
Scotland’s economy grew by 0.7% in the three months to the end of June and 1.1% over the year.
The unemployment rate stood at 5.1% in the three months to June 2026, an increase of 0.6 percentage points on the previous quarter. The unemployment rate was 3.6%, and economic inactivity fell by 0.7 percentage points to 22.0%.
The employment rate rose by 0.2 percentage points compared to the previous quarter but was down by 1.1 percentage points on the year.
With these challenges, earnings growth has slowed over the year and fell from 4.9% in June to 42.3% in July. Real terms earnings (after the effect of inflation) grew by 1.5% down from 2.3%, reflecting a pick-up in inflation.
Read more from the Scottish Economic Bulletin and the Scottish Economic Insights reports.
Scotland’s economy grew by 0.7% in the three months to the end of June and 1.1% over the year.
The unemployment rate stood at 5.1% in the three months to June 2026, an increase of 0.6 percentage points on the previous quarter. The unemployment rate was 3.6%, and economic inactivity fell by 0.7 percentage points to 22.0%.
The employment rate rose by 0.2 percentage points compared to the previous quarter but was down by 1.1 percentage points on the year.
With these challenges, earnings growth has slowed over the year and fell from 4.9% in June to 42.3% in July. Real terms earnings (after the effect of inflation) grew by 1.5% down from 2.3%, reflecting a pick-up in inflation.
Read more from the Scottish Economic Bulletin and the Scottish Economic Insights reports.
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