Fair Work action plan: evidence plan

3. Broadening the evidence base for Fair Work in Scotland

3.1 The Evidence Plan also covers further work the Scottish Government will undertake to address data and wider evidence gaps across the different dimensions of Fair Work to inform further policy actions. These include work that will be undertaken to draw lessons on key Fair Work issues from comparable economies.

3.2 This chapter sets out activities to develop data on Fair Work in Scotland currently planned by the Scottish Government over the life of the Action Plan. It also sets out the areas where the Scottish Government intends to undertake further evidence gathering, over and above those required to evaluate activities in the Action Plan.

Developing data on Fair Work in Scotland

Developments since December 2022

3.3 It is important to note that there have been several important developments in the data available on Fair Work and labour market outcomes since the publication of the Action Plan in December 2022.

3.4 Scotland’s Equality Evidence Strategy 2023-2025^[21] was published in March 2023. This sets out the Scottish Government’s plans to improve and strengthen equalities data in Scotland, including regarding labour market and economy data, and data on the Scottish Government’s employability support.^[22]

3.5 Following publication of the Equality Evidence Strategy, the Scottish Government published specific labour market data for Scotland by disability in May 2023.^[23] This followed the publication of specific labour market data on ethnicity in December 2022.^[24] Data on job-related training, including equalities data, was published in June 2023.^[25]

Planned activities between 2024 and 2026

3.6 There has also been work to further develop Fair Work data available for Scotland. This includes incorporation of new questions on aspects of Fair Work into the Annual Population Survey, which is collected by ONS.^[26] This data is now available for January to December 2022.

3.7 The most significant data developments will arise from the ONS Transformed Labour Force Survey (TLFS). This project aims to improve the quality, granularity and timeliness of labour market data for the UK, through improvements to sample design and data collection methods. It is anticipated that the first estimates for Scotland from the TLFS will become available in March 2024. The ONS Annual Population Survey will continue in its current format until the end of 2023.^[27]

3.8 It is anticipated that the TLFS will generate more accurate estimates of labour market activity for Scotland, with the annual data providing greater accuracy for detailed breakdowns of the population. There are likely to be improvements to questions and new questions added over time. Scottish Government statisticians are engaging with ONS on the TLFS on an ongoing basis to ensure that Scottish data needs are reflected in ONS’s data development.

3.9 Scottish Government analysts will take forward detailed investigation of the TLFS during 2024. They will also engage with stakeholders on their outputs and findings, particularly the Fair Work Convention, to advise on Fair Work measures from the new transformed survey.

3.10 The Scottish Parliament's Economy and Fair Work Committee is currently undertaking an inquiry into the disability employment gap.^[28] In evidence provided to the Committee thus far, issues around coverage of existing data have been highlighted, including regarding intersectionality. There are also long-standing issues around data for other protected characteristics. As part of the broader work to improve labour market data following the introduction of the TLFS, Scottish Government analysts will explore the feasibility of disseminating more detailed breakdowns within emerging labour market datasets, and on further developing the disaggregation available for protected characteristics to support more granular analysis. This work will take place during 2024 and beyond, with planned publications being pre-announced. Scottish Government analysts will also engage with stakeholders on our outputs, to ensure that these continue to meet the needs of users.

3.11 It is anticipated that these activities will improve the data available on the broader Fair Work context for Scotland, and will also support improved measurement of indicators related to the Action Plan’s outcomes.

Developing further evidence on Fair Work to support future policy

3.12 The evidence base on Fair Work continues to evolve. Both delivery of the current Action Plan and future policy development will require understanding of the effects of activities set out in the Action Plan, and an ongoing understanding of emerging evidence related to Scotland’s challenges and priorities. While some of this will be generated by the monitoring and evaluation activities set out in chapter 2, the evidence base will also be added to by the activities of the Scottish Government and the wider research community in Scotland and beyond.

3.13 Based on the outcomes for the Fair Work Action Plan, and engagement activities in the development of the Evidence Plan, we anticipate that ongoing additional research activity will be concentrated around:

• The considerations employers’ face when adopting Fair Work practices, and how these vary across sectors, by size of business, and by business model; and
• How people are supported to prepare for, access, and sustain Fair Work.

3.14 Scottish Government analysts currently intend to take forward several activities in these areas over the lifetime of the Evidence Plan. These will be oriented towards informing and supporting future Fair Work policy development. Detailed scoping of specific projects will be developed with policy practitioners and stakeholders in due course.

Employers’ considerations around Fair Work

3.15 Employers are vitally important to the success of actions to improve Fair Work. This makes it essential to understand why employers do and do not choose to adopt different practices, and the challenges they may face when looking to do so, particularly if they face difficult trading conditions.

3.16 It is also important to ensure the evidence base is developed around challenges that businesses may face adopting Fair Work practices, particularly smaller businesses and those facing challenging trading conditions. The Fair Work Convention has undertaken detailed engagement in recent years across sectors where Fair Work adoption has traditionally been seen as challenging. Scottish Government analysts will engage with the Fair Work Convention following completion of the Hospitality Industry Inquiry^[29] to identify areas where further research into challenges facing businesses may be valuable.

3.17 The Scottish Government is keen to ensure that the benefits of adopting Fair Work practices are widely understood, particularly with respect to how they can improve business performance. We therefore intend to review the existing and emerging evidence on impacts of workplace policies and practice on business outcomes and workforce wellbeing. As this will be of interest to a range of stakeholders, we will look to develop work in this space through engagement with the Fair Work Convention and the New Deal for Business Group.^[30]

3.18 The Fair Work Convention has also recommended that the Scottish Government undertake further research to understand international best practice in improving skills utilisation, recognising that this makes an important contribution to workers’ wellbeing, and to supporting business flexibility, adaptation and productivity improvement. We will look to take forward research in this area during the lifetime of this Evidence Plan.

How people are supported to prepare for, access, and sustain Fair Work

3.19 It is important to understand the factors that support and hinder people when looking to access and sustain Fair Work. This is particularly the case for groups who have historically experienced labour market disadvantage.

3.20 The Fair Work Action Plan highlighted key evidence gaps in several areas, particularly around the contributory factors to the gender pay gap. In 2021 the Scottish Government commissioned the University of Warwick to undertake work to review varied international approaches to redress the undervaluation of women’s work and assess their applicability to the Scottish employment context. The final report^[31] draws lessons from other comparable economies on what is achievable and finds that undervaluation of women’s work is a driver of the gender pay gap, and makes recommendations to alleviate this disparity. The Scottish Government will respond to these recommendations in Spring 2024.

3.21 There is a substantial literature on the dimensions of the gender pay gap and the factors contributing to it. The Fair Work Action Plan highlighted the importance of unpaid care on influencing the gender pay gap. It is also an area where factors like the Covid-19 pandemic may have exacerbated gender differences.^[32] Scottish Government analysts will undertake a review of emerging evidence relevant to Scotland on the contribution of unpaid care towards the gender pay gap, to help inform future research agendas.

3.22 We also recognise the importance of developing the evidence base further on the actions that have been successful in supporting people from racialised minority backgrounds to access Fair Work. This is an area where there have previously been challenges within Scotland, owing to small sample sizes within household surveys. With this in mind, we intend to undertake further research in this area, drawing on and developing evidence based on lived experience where possible.

3.23 The Scottish Government has set a target to halve the disability employment gap by 2038 (from 2016 baseline of 37.4 percentage points). Though notable progress has been made towards this, the Fair Work Action Plan identified a need to further develop the evidence base around interventions to support disabled people into work. This is particularly important considering recent trends and challenges around economic inactivity. The Fair Work Convention’s recent report on Measuring Scotland’s Performance as a Leading Fair Work nation also recommends that this is an area where the Scottish Government looks to learn from practice in other countries.^[33]

3.24 Although this is the subject of an ongoing inquiry by the Scottish Parliament’s Economy and Fair Work Committee, the Scottish Government recognises that further work to develop the evidence base is required. We will undertake a comparative study of practice in other countries, based on the Fair Work Convention’s recommendation. We will also consider future areas for research under the Evidence Plan following final recommendations from the Committee.

Engaging with the wider research community

3.25 The evidence base in this area will continue to develop, and policymakers will require evidence to inform decisions and make the case for change, particularly as workplaces evolve and change in years to come.

3.26 While the Evidence Plan sets out areas where the Scottish Government will be seeking to develop evidence in the coming years, we recognise the importance of continuing to develop the evidence base across Fair Work. We are keen to encourage the development of the broader evidence base around Fair Work, and particularly evidence that can inform policy aligned to the outcomes of the Action Plan.

3.27 The Scottish Government hopes that the priorities articulated in this document will support those preparing applications to prospective funding bodies. It is intended to support those developing proposals for new research to articulate clear links between their work and the Scottish Government’s areas of interest around Fair Work, helping to strengthen the case for the public impact of research.