Scotland's economy: Subject profile | Scottish Parliament

Scotland's economy: Subject profile

Author: Rob Watts

PDF Published: Wednesday 01 Jul 2026 (SB 26-40)

Chart showing median gross weekly earnings for employees in Scotland expressed in 2025 prices (so real terms) since 1998. Earnings stagated in 2008, fell from 2010 to 2013, then started growing again from 2014 but at a slower average annual rate than before 2008.

Image: Median gross weekly earnings for employees (£, 2025 prices), Scotland

Bar chart showing the share of businesses, private sector employment and turnover in Scotland by business size as of March 2025. Small businesses accounted for 98.3% of businesses, 43.4% of employment and 27.8% of turnover. Medium-sized businesses accounted for 1.0% of businesses, 12.8% of employment and 14.1% of turnover. Large businesses accoutned for 0.6% of businesses, 43.8% of employment and 58.1% of turnover.

Image: Figure 8: Share of businesses, employment and turnover by size, as of March 2025, Scotland

Line chart showing international exports from Scotland as a percentage of GDP. The figure oscillated around 20%, before falling during the Covid-19 pandemic. In 2023, exports were 18.9% of GDP, below the Scottish Government's 25% target.

Image: Figure 18: Value of international exports as a percentage of onshore GDP, Scotland

Chart showing the rate of growth in GDP per capita in Scotland since 1998. Growth in GDP per capita has slowed since around 2008.

Image: Figure 1: Onshore GDP per capita, chained volume measure (2022=100), Scotland

Bar chart showing output per hour worked in different regions and nations of the UK in 2023. It shows that labour productivity in Scotland was 1.1% below the UK average, but higher than everywhere outside the South East of England. This is due to London heavily skewing the UK's average upwards.

Image: Figure 2: Output per hour worked relative to UK average, 2023

Bar chart showing GVA per head for different sectors of the Scottish economy in 2023. Primary industries report far higher productivity levels than every other sector. There is variation within service sectors. Industries such as IT and professional services report higher productivity levels than sectors that include retail and hospitality, education, health and social work, arts and creative industries.

Image: Figure 3: Gross Value Added per head of selected industries (£, 2023 prices), Scotland, 2023

Chart showing the average annual rate of growth in real disposable income per person in Scotland from 1999-00. Disposable income per person grew at around 2.9% per year between 1999-00 and 2007-08. Growth then slowed to an average of 0.8% per year until 2024-25. Forecasts suggest growth in real disposable income per person is likely to average around 0.4% per year until 2030-31.

Image: Figure 4: Average annual growth rate in disposable income per person, Scotland, real terms

Chart showing median gross weekly earnings for employees in Scotland expressed in 2025 prices (so real terms) since 1998. Earnings stagated in 2008, fell from 2010 to 2013, then started growing again from 2014 but at a slower average annual rate than before 2008.

Image: Figure 5: Median gross weekly earnings for employees (£, 2025 prices), Scotland

Chart showing the share of Scotland's GVA accounted for by different sectors between 1998 and 2023. Manufacturing's share of output has declined from 17.4% to 9.9%. Service sectors have seen their share increase over time, particularly business services, finance and communication, and government, defence, health and education.

Image: Figure 6: Share of GVA by sector, Scotland

Bar chart showing GVA per capita in different regions of Scotland in 2022. GVA per capita in the City of Edinburgh (£59,466) was over three times higher than in East Lothian and Midlothian (£18,792).

Image: Figure 7: GVA per capita by region (£, 2022 prices), Scotland, 2022

Line chart showing Scotland and the UK's employment rate since 1998. The employment rate rose in the early 2010s and has stayed high at close to 75%. However, Scotland's employment rate has teneded to be lower than the UK average since 2018.

Image: Figure 9: Employment rate, Scotland, Jan-Mar 1998 to Jan-Mar 2026

Line chart showing the unemployment rate in Scotland and the UK since 1998. After peaking at around 8% after the 2008 global financial crisis, unemployment has fallen to around 4%, with Scotland's unemployment rate being slightly lower than the UK average post Covid-19.

Image: Figure 10: Unemployment rate, Scotland, Jan-Mar 1998 to Jan-Mar 2026

Line chart showing the economic inactivity rate for Scotland and the UK since 1998. The latest inactivity rate in Scotland was 22.2%; the UK average was 21.0%.

Image: Figure 11: Economic inactivity rate, Scotland, Jan-Mar 1998 to Jan-Mar 2026

Line chart showing that the number of people out of the labour force due to long-term sickness in Scotland has risen from around 210,000 in 2018 to 270,000 in 2025.

Image: Figure 12: Economic inactivity due to long-term sickness, Scotland, Jan-Dec 2010 to Jan-Dec 2025

Line chart showing the skills shortage vacancy rate in Scotland and the UK between 2011 and 2024. The rate rose through the 2010s from under 4% to around 10%. It has since fallen back to just over 6%, with the UK and Scottish performance being very similar over time.

Image: Figure 13: Skills shortage vacancy rate, Scotland and the UK

Line chart showing the average number of training days per employee in Scotland and the UK. The figures has fallen from 4.2 in 2011 to 3.6 in 2024 in Scotland and the UK. It has been on a downward trend since 2013.

Image: Figure 14: Average number of training days per employee, Scotland and UK

Chart showing gross fixed capital formation across OECD countries, the UK and Scotland. It shows that the UK and Scotland has had comparatively low investment levels each year since 1998.

Image: Figure 15: Gross fixed capital formation as a percentage of GDP, OECD countries

Bar chart showing GERD for OECD countries in 2023 as a percentage of GDP. At 2.5% of GDP, Scotland's GERD figure was just below the OECD average of 2.70%.

Image: Figure 16: Gross Expenditure on Research and Development as a percentage of GDP, OECD countries, 2023

Line chart showing the share of Scottish businesses that survive to 3 years. 57.6% of businesses started in 2021 survived 3 years, which is slightly up on the 56.0% figure for the previous year. However, this remains below the average since 2004 of 60.4%.

Image: Figure 17: Percentage of businesses surviving 3 years, Scotland

Line chart showing Scotland's Gini coefficient since 1994-97 both before and afer housing costs. The chart shows that the Gini coefficient has osciallated between 30 - 33% before housing costs and 33 - 37% after housing costs, but remained broadly stable. The Gini coefficient has fallen since the Covid-19 pendmic.

Image: Figure 19: Gini coefficient of income inequality, Scotland

Line chart showing the Gini coefficient of wealth inequality in Scotland since 2006-08. Having been in the low 60s%, it has recently dropped to 59%.

Image: Figure 20: Gini coefficient of wealth inequality, Scotland

Line chart showing the proportion of children living in absolute poverty in Scotland between 1994-97 and 2022-25, both before and after housing costs. Absolute poverty rates have fallen from around 46-50% to around 20-23%.

Image: Figure 21: Proportion of children in absolute poverty, Scotland

Line chart showing the proportion of children living in relative poverty in Scotland between 1994-97 and 2022-25, both before and after housing costs. Relative poverty rates have fallen from around 30% to around 20%.

Image: Figure 22: Proportion of children in relative poverty, Scotland

Line chart showing the proportion of pensioners living in absolute poverty in Scotland between 1994-97 and 2022-25, both before and after housing costs. Absolute poverty rates have fallen from around 53-54% to around 14-17%.

Image: Figure 23: Proportion of pensioners in absolute poverty, Scotland

Line chart showing the proportion of pensioners living in relative poverty in Scotland between 1994-97 and 2022-25, both before and after housing costs. Relative poverty rates have fallen roughly in half from around 30% to around 15%.

Image: Figure 24: Proportion of pensioners in relative poverty, Scotland

Line chart showing the proportion of working-age adults in relative poverty that live in a working household in Scotland between 1994-97 and 2022-25, after housing costs. Working households make up an increasing share of working-age poverty, rising from 48% in 1994-97 to 63% in 2022-25.

Image: Figure 25: Share of working-age adults in relative poverty after housing costs who live in a household where someone works

Last Updated: 1/7 2:50pm

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