As the UK labour market undergoes signs of cooling in early 2026, youth unemployment continues to be a key concern — both nationally and in Scotland. While Scotland’s overall jobless rate remains relatively low compared with the rest of the UK, younger workers still face notable challenges in securing employment.
Current Youth Unemployment Levels in Scotland
According to the most recent labour market statistics published by the Scottish Government and derived from the ONS Labour Force Survey, Scotland’s youth unemployment — the share of people aged 16 to 24 without work but actively seeking it — sits around 10.2% in the latest quarterly estimates (September to November 2025).
While this figure represents a higher rate than Scotland’s overall unemployment, which was estimated at roughly 3.7–3.8% for the same period, it remains lower than the current UK youth unemployment rate.
Official labour market publications caution that youth unemployment estimates can be volatile due to smaller sample sizes in age-specific data, and that these figures should be interpreted alongside broader measures of labour market engagement.
For context, the latest UK-wide ONS data show youth unemployment (for 18- to 24-year-olds) reaching around 14–16% — well above Scottish levels — reflecting broader pressures on entry-level hiring across the UK economy.
Comparing Scotland and the UK
The Scottish youth unemployment rate of about 10% remains significantly below the equivalent UK figure reported for late 2025 and early 2026. Across the UK, the overall unemployment rate climbed to around 5.2%, with young workers disproportionately affected; ONS figures indicate around 14% unemployment for those aged 18–24, one of the highest levels in years.
This divergence highlights Scotland’s relatively stronger labour market for young people compared with some English regions where youth joblessness has climbed sharply. However, even within Scotland, the rate among young workers remains multiple times higher than for working-age adults as a whole.
Youth Employment Patterns
Youth unemployment statistics on their own don’t capture the full picture. Young people are more likely than older age groups to be:
- Economically inactive, meaning neither working nor actively seeking work — often because they’re in full-time education, training, caring roles, or discouraged by job prospects.
- NEET (Not in Education, Employment or Training), a related measure that encompasses those truly disconnected from both the labour market and formal learning.
Latest broader data suggest that economic inactivity and NEET rates among young people are substantial, reinforcing that youth labour market challenges extend beyond unemployment figures alone.
What’s Driving Youth Labour Market Trends?
Several factors appear to shape the current youth employment landscape:
- Cost pressures and hiring challenges: Across the UK, wages and business costs are cited as factors making employers more selective in recruiting, especially for entry-level roles.
- Policy shifts: National debates over minimum wage increases for younger workers and other labour market policies are linked with concerns about youth hiring.
- Economic volatility: Macroeconomic uncertainty has dampened job growth overall, which tends to hit new entrants to the workforce hardest.
- Education-to-work transitions: Gap between skills offered and employer needs affects youth employment prospects across sectors.
Looking Ahead
Although Scotland’s youth unemployment rate is lower than the broader UK average, it remains significantly higher than the overall Scottish unemployment rate, indicating persistent structural challenges for younger workers. Policy discussions continue around how to better support transitions from education into work, to expand apprenticeships and training, and to stimulate job creation in sectors likely to employ young people.
Labour market officials also note that future releases of the ONS labour market statistics — including refinements to methodology — may influence the interpretation and precision of youth unemployment data in the months ahead.