Regional employment patterns in Scotland: statistics from the Annual Population Survey 2016

1. Economic Activity

The number of people aged 16 and over who were economically active in Scotland in 2016 was 2,711,100. Over the year, the economic activity level decreased by 25,200. This was mainly due to a decrease in the number of 16-24 and 35-49 year old women who were economically active.

Economically active individuals are those who are in employment or have been actively seeking work and are available to start work, the International Labour Organisation ( ILO) definition of unemployment.

Of those who were economically active in 2016, 95.2 per cent were in employment (2,579,700) while 4.8 per cent were unemployed (131,400).

Chart 1: Economic Activity Rate (16-64), Scotland and UK

1.1 Employment

People are classed as being in employment if they are over 16 years old and have done at least one hour of paid work in the week prior to their Labour Force Survey ( LFS) interview or have a job that they are temporarily away from.

People who are employees, self-employed, unpaid workers in a family business or on Government-supported training and employment programmes are classed as being employed under the ILO definition.

Employment level (16+) in Scotland was highest level on record at 2,579,700

In 2016, the employment level (16+) in Scotland increased by 2,400 over the year to 2,579,700, the highest level since comparable records began in 2004. Over the year, the increase in the overall employment level was driven by increases in the number of men who were employed. However, the employment rate (16-64) is still below the rates seen prior to the 2008 recession.

Chart 2: Employment Rate (16-64), Scotland and UK

The employment rate for those aged 16-64 in Scotland was higher than that of the UK until 2011. Since 2012, Scotland's employment rate has followed a similar trend to that of the UK with the rates diverging in 2016.

Over the year, the employment rate decreased by 0.1 percentage points in Scotland and increased by 0.4 percentage points in the UK.

Employment rates increased in 16 local authority areas in Scotland over the year

There is considerable variation in employment rates for those aged 16-64 across Scotland's local authorities. The highest employment rates were seen in Shetland Islands (86.6%), Orkney Islands (86.0%) and Argyll & Bute (78.4%) while the lowest employment rates were seen in North Ayrshire (64.4%), Dundee City (66.0%) and East Ayrshire (66.3%).

Over the year, 16 of the local authority areas in Scotland saw an increase in their employment rate while 15 saw a decrease and one remained unchanged.

Statistically significant ^[1] changes in employment rates were seen in Aberdeen City (down 6.3 percentage points from 76.5% to 70.2%) and Angus (up 4.6 percentage points from 73.7% to 78.2%).

Gap between employment rates of the top and bottom 3 performing local authorities in Scotland reduced by 0.6 percentage points over the year

Chart 3: Employment Rates (16-64) for Top and Bottom 3 Performing Local Authorities Scotland and UK

The gap between the employment rates of the top and bottom three performing local authorities in Scotland reduced by 0.6 percentage points over the year ^[2] .

Over the year, the gap between the employment rates of the top and bottom three performing local authorities, as measured by the Cohesion Purpose Target, reduced from 16.2 to 15.6 percentage points. The gap is still wider than the 14.1 percentage points seen at the start of the recession.

Further information about the Cohesion Purpose Target is available at:

http://www.gov.scot/About/Performance/scotPerforms/purposetargets/cohesion

1.1.1 Gender

The diagram below presents the composition of those in employment by gender in 2016.

^[3]

Employment level for men of 1,334,300 is the highest level since 2008

The employment level (16+) for men in Scotland has increased by 13,900 over the year to reach 1,334,300, the highest employment level for men since 2008.

Over the same period, the employment level for women decreased from 1,256,900 to 1,245,400 (down by 11,500). However, it is still higher than the employment levels seen before and following the 2008 recession.

Chart 4: Employment Level (16+) by Gender, Scotland

The employment (16-64) rate for women in Scotland decreased by 0.9 percentage points from 70.1 per cent in 2015 to 69.2 per cent in 2016, driving the decrease in the overall employment rate over the same period (down 0.1 percentage points from 73.1% to 72.9%). However, the employment rate for men increased by 0.7 percentage points from 76.2 per cent to 76.9 per cent.

Of the 32 local authority areas of Scotland, 15 saw increases in their employment rates for women over the year, with the remaining 17 seeing decreases. Statistically significant changes over the year were seen in Aberdeen City (down 8.5 percentage points from 76.4% to 67.9%) and Dundee City (up 8.9 percentage points from 60.4% to 69.3%).

For the employment rates for men across Scotland, 19 local authorities saw increases in their employment rates over the year, with the remaining 13 seeing decreases. Statistically significant changes over the year were seen in Angus (up 6.3 percentage points from 77.7% to 84.1%) and Highland (down 6.8 percentage points from 85.0% to 78.1%).

Chart 5: Employment Rate (16-64) by Gender, Scotland

The employment rate for men in Scotland was 76.9 per cent, 0.7 percentage points higher than the rate in 2015. Since the UK rate for men increased by 0.4 percentage points, i.e. slower growth over the year, the gap between the Scotland and UK employment rates for men has decreased to 2.0 percentage points, from 2.3 percentage points the year before.

The employment rate for women in Scotland was higher than the UK rate. However, over the year the employment rate for women decreased by 0.9 percentage points in Scotland while it increased by 0.5 percentage points for the UK.

Gender employment gap in Scotland was 7.6 percentage points, 2.2 percentage points lower than the UK

Between 2004 and 2016, the gender employment gap for Scotland has been lower than the gender employment gap for the UK. The gender employment gap for Scotland has increased over the year to the same gap seen in 2014. The increase in the gap over the year is due to a decrease of 0.9 percentage points in the employment rate for women while the employment rate for men increased by 0.7 percentage points.

Chart 6: Gender Employment Gap (16-64), Scotland and UK

1.1.2 Age

Decrease over the year in the 16-24 and 35-49 age groups was driven by women

Employment rates for 25-34 and 35-49 year olds have remained around 80 per cent from 2004 to 2016, indicating a fairly high resilience to economic change. In 2016, the employment rate for 25-34 year olds was 80.8 per cent while 35-49 year olds had the highest employment rate at 81.9 per cent.

Chart 7: Employment Rates (16-64) by Age, Scotland

Young workers (16-24) saw the main impact of the recession with their employment rates reducing from 60.7 per cent in 2008 to 52.6 per cent in 2013, starting to recover until 2015 and then decreasing slightly to 55.7 per cent in 2016. In contrast, employment rates for those aged 50-64 have increased through the recovery remaining fairly constant over the last year (68.8 per cent in 2016).

Over the year, women are driving the decrease in the employment rate for those aged 16-24 and those aged 35-49.

Chart 8: Employment Rates (16+) by Age and Gender, Scotland

Highest youth (16-24) employment rates were seen in the Orkney Islands, Midlothian and Renfrewshire

The youth employment rate in Scotland during 2016 decreased by 0.7 percentage points over the year from 56.4% to 55.7%, while the UK rate decreased by 0.1 percentage points from 53.6% to 53.5%. The current youth employment rates in both Scotland and the UK remain lower than the rates in 2008 (down 5.0 and 2.4 percentage points respectively).

Across Scotland, the highest youth employment rates were seen in the Orkney Islands (78.1%), Midlothian (76.9%) and Renfrewshire (71.8%) while the lowest rates were seen in Clackmannanshire (35.4%), Edinburgh City (39.9%) and East Ayrshire (44.7%).

Over the year, 19 of the local authority areas in Scotland saw an increase in their youth employment rates while the remaining 13 saw a decrease.

Statistically significant changes over the year were seen in Aberdeen City (down 19.1 percentage points from 63.9% to 44.8%), Midlothian (up 19.7 percentage points from 57.2% to 76.9%) and North Lanarkshire (up 13.2 percentage points from 57.0% to 70.2%).

Over half of workers over state pension age (65+) in Scotland said they had not yet retired because they were not ready to stop working

The employment rate for older workers (50+) in Scotland has been increasing steadily from 35.7% in 2004 to 40.3% in 2016, driven by:

• the employment level for 50-64 year olds rising from 573,200 to 742,400, with their employment rate increasing from 61.9% to 68.8%
• the employment level for those aged 65 and over rising from 41,200 to 89,300, with their employment rate increasing from 5.2% to 9.1%

Women accounted for 54 per cent of the increase in those aged 50-64, whilst men accounted for around 55 per cent of the increase in those aged 65+. The shift in both cases is mainly from inactivity to employment (delaying retirement or moving back into work from either retirement or sickness)

The local authorities with the highest employment rates for older workers (50+) - Shetland Islands (50.1%), Orkney Islands (49.5%), Aberdeenshire (47.0%), Highland and Na h-Eileanan Siar (both 46.7%).

Chart 9: Main Reason for Remaining in Work, Scotland

In 2016, there were 89,300 workers in Scotland who were over the state pension age (65+), up 8,800 over the year.

The main reason given for remaining in work was that they were not ready to stop work yet (56.2%) ^[4] .

11.2 per cent had chosen to remain in work to pay for essential items ( e.g. bills) while 7.6 per cent had remained in work to boost their pension pot.

1.1.3 Disability

Gap between employment rates of disabled and non-disabled people increases with age

In 2016, the employment rate for those classed as disabled under the Equality Act 2010 ^[5] was 37.3 percentage points lower than the employment rate for those not classed as disabled.

The gap between the employment rates for disabled and non-disabled people has decreased over the year by 1.1 percentage points, which is due to the employment rate for disabled people increasing by 0.9 percentage points and the employment rate for those not classed as disabled decreasing by 0.1 percentage points.

The Equality Act Disabled employment rate was 42.9 per cent in Scotland overall. The highest rates were seen in the Shetland Islands (72.5%), East Dunbartonshire (58.6%), Argyll and Bute (57.1%), Perth and Kinross (55.6%) and Angus (53.9%).

Chart 10: Employment Rates (16-64) by Equality Act Disabled and Gender, Scotland

The employment rate gap between Equality Act Disabled and not Equality Act Disabled women was lower than the gap for men in 2016 (33.2 and 41.5 percentage points respectively).

The employment rate gap for Equality Act Disabled and not Equality Act Disabled people increases with age.

Young (16-24) disabled people have the lowest employment rate gap at 23.0 percentage points. However, they have the lowest employment rates for Equality Act disabled (35.7%) and not Equality Act disabled (58.7%) people. Older workers (50-64) have the largest employment gap at 44.1 percentage points, reflecting greater health issues faced by those in this age group.

Chart 11: Employment Rates (16-64) by Equality Act Disabled and Age, Scotland

1.1.4 Ethnicity

Minority ethnic women had substantially lower employment rates than white ethnic women

Chart 12: Employment Rates (16-64) by Ethnic Group, Scotland

From 2004 to 2016, the employment rate for ethnic minorities aged 16-64 in Scotland is continually lower than the employment rate for ethnic white people. In 2016, the employment rate for ethnic minorities was 57.6 per cent (down 1.3 percentage points from 58.9% in 2015) compared to an employment rate of 73.7 per cent for ethnic white people (up 0.1 percentage points), an employment rate gap of 16.2 percentage points.

The employment rates for ethnic minorities varied across Scotland with the highest rates being seen in Lanarkshire (75.1%) and the Highland and Islands (73.3%) ^[6] .

Chart 13: Employment Rates (16-64) by Ethnic Group and Gender, Scotland

The employment rate gap is mainly driven by the much lower employment rate for minority ethnic women compared to the employment rate for ethnic white women, an employment rate gap of around 26 percentage points. In contrast, the gap in employment rates between minority ethnic men and ethnic white men is around 6 percentage points ^[7] .

Chart 14: Employment Rates (16-64) by Ethnic Group and Age, Scotland

Looking at the minority ethnic and white ethnic employment rates broken down by age, it can be seen that the employment rate for ethnic minorities aged 16-24 is 38 percentage points lower than the white ethnic group of the same age. This employment rate gap decreases with age with the oldest age group (50-64) having higher employment rates in the minority ethnic group than in the white ethnic group ^[7] .

1.1.5 Working Patterns/Types of Work

Full-time employment levels increased to 1,885,800 - highest level since 2008

The proportion of people aged 16+ in full-time employment was fairly constant until the start of the recession. Following the recession, the proportion in full-time employment gradually decreased until 2012 when it started to recover. However, it is yet to recover to proportions seen prior to 2008.

Chart 15: Employment Level (16+) by Working Pattern, Scotland

The full-time employment level increased by 14,700 over the year to reach 1,885,800 in 2016. This increase was driven by an increase in the number of men who were in full-time employment (up 16,700 over the year). The current level is still 18,000 lower than the level seen in 2008 (1,903,800).

The part-time employment level decreased from 701,900 in 2015 to 688,300 in 2016 (down 13,600 over the year). This was driven by a decrease in the number of women who were in part-time employment (down 10,000 over the year). The part-time employment level is still 63,200 higher than the level seen in 2008.

Of the part-time workers who gave a reason for working part-time, 67.6 per cent stated they did not want a full-time job while 14.1 per cent stated they could not find a full-time job.

Highest self-employment level and rate on record

Chart 16: Proportion of all in Employment who are Self-employed (16+) by Gender, Scotland

The number of people aged 16+ who are self-employed in Scotland has increased by 29,800 over the year to reach 327,200, the highest self-employment level on record.

This was driven by record high self-employment levels for men and women (up 19,300 for men and 10,500 for women).

Decrease in underemployment driven mainly by decreases for women aged 16-49 in part-time work

One of the National Indicators in the Government's National Performance Framework is to reduce the proportion of workers who are underemployed.

Chart 17: Underemployment Rate (16+) by Age, Scotland

The underemployment ^[8] level for those aged 16 and over in Scotland decreased by 20,100 over the year to 213,100, with the rate decreasing by 0.8 percentage points from 9.2 per cent to 8.4 per cent.

The decrease in underemployment over the year was mainly driven by decreases in levels for women working part-time (down 19,400) although smaller decreases were also seen for women in full-time work.

All age groups saw decreases over the year in underemployment, with 16-24, 25-34 and 35-49 year olds seeing the largest decreases (down 6,400; 5,900 and 5,200 respectively).

Underemployment is still higher in most local authorities than it was prior at the start of the 2008 recession

The local authority areas with the highest underemployment rates in 2016 were Shetland Islands (21.3%), Na h-Eileanan Siar (11.7%) and Highland and North Ayrshire (both 11.3%), while the lowest rates were seen in North Lanarkshire (5.1%), East Dunbartonshire (5.6%) and Clackmannanshire (5.8%).

Underemployment rates reduced in 20 local authority areas over the year, while 11 saw increases and one remained unchanged. Statistically significant changes were seen over the year in the Scottish Borders (down 3.7 percentage points from 13.2% to 9.5%), Shetland Islands (up 10.7 percentage points from 10.6% to 21.3%), West Lothian (up 2.8 percentage points from 5.0% to 7.8%) and for Scotland overall (down 0.8 percentage points from 9.2% to 8.4%).

However, underemployment remains higher in most local authority areas than in 2008, with 24 local authorities having a higher rate and 6 having a lower rate than in 2008. Statistically significant changes in the underemployment rates between 2008 and 2016 were seen in Aberdeenshire (up 3.4 percentage points from 5.9% to 9.3%), East Renfrewshire (up 2.9 percentage points from 4.1% to 7.0%) and for Scotland overall (up 1.4 percentage points from 7.0% to 8.4%).

Further information about the Underemployment National Indicator is available at: http://www.gov.scot/About/Performance/scotPerforms/indicator/underemployment

1.1.6 Industry/Occupation/Sector

Overall, the largest employing sector in 2016 in Scotland was Public Admin, Education and Health (31.2%). This was the largest employing sector across all local authority areas. At Scotland level, this was followed by Distribution, Hotels and Restaurants (18.8%) and Banking and Finance the third largest sector (16.0%).

The smallest employing sectors in Scotland overall were Agriculture and Fisheries (1.8% overall), although accounting for over 10 per cent of all employment in Shetland Islands (10.4%) and Dumfries and Galloway (10.1%).

Also Energy and Water accounts for 3.4 per cent of overall employment in Scotland, although accounting for 14.0 per cent in Aberdeenshire and 10.8 per cent in Aberdeen City.

Gains in employment levels seen over the year in the Transport and Communication and Construction sectors

Chart 18: Change in the Number of People Employed over the year (16+) by Industry and Gender, Scotland

Over the year to 2016, the largest increase in employment levels was seen in the Transport and Communication sector (up 11,800). By Local Authority, 9,000 of the increase in Transport and Communication occurred in the City of Edinburgh, with this sector increasing to account for 12.8 per cent of employment of people who live in Edinburgh.

The number of people employed in the Construction industry increased by 8,500 over the year, with 6,000 of the increase occurring in the City of Glasgow.

The largest decrease in employment level was seen in the Manufacturing sector (down 22,100), with largest decreases in this sector occurring in South Lanarkshire, Glasgow and Edinburgh.

Gender segregation remains a persistent issue across several industry sectors and occupational groups in Scotland

Chart 19: Proportion of all in Employment (16+) by Industry and Gender, Scotland

Although equality legislation has been in place for many years ^[9] gender segregation is still apparent in many industry sectors in Scotland.

Almost half of women in Scotland (45.4%) work in the Public Admin, Education and Health sector (Note this is not the same as the Public Sector).

Over two-fifths (42.6%) of men work in sectors that exhibit high levels of gender segregation: Construction (11.9%), Transport and Communication (11.3%), Manufacturing (11.1%), Energy and Water (5.5%) and Agriculture and Fishing (2.9%).

Gender segregation across the various occupational groups shows a similar picture to that seen across industry sectors with specific occupational groups showing high levels of segregation.

Chart 20: Proportion of all in Employment (16+) by Occupation and Gender, Scotland

44.8 per cent of women in Scotland were employed in occupations that are gender segregated towards women: Administrative and Secretarial (16.7%), Personal Service (16.1%) and Sales and Customer Service occupations (12.1%).

29.7 per cent of men in Scotland were employed in occupations that exhibit high levels of gender segregation: Skilled Trades (18.8%) and Process, Plant and Machine Operatives (10.9%).

Private sector employment in 2016 increased by 9,900 over the year to 1,888,000 - the highest level on record since the series began

Since the series began in 2004, there have been increases in the number of those aged 25-34, 50-64 and 65+ employed in the private sector (up 74,400, 119,800 and 38,300 respectively) while the number of those aged 16-24 and 35-39 employed in the private sector has decreased (down 34,900 and 29,200 respectively).

Chart 21: Changes in Public and Private Sector Employment since 2004, Scotland

Since 2008, the increases seen in private sector employment have been driven by increases in part-time employment (up 61,200), while full-time employment increased by 11,400.

In contrast the decreases seen in the public sector ^[10] since 2008 were driven by decreases in full-time employment levels (down 33,600).

1.1.7 Education, Skills and Training

A record high 49.2 per cent of working people (aged 16-64) have Further or Higher education qualifications in Scotland

In Scotland in 2016, 49.2 per cent of working people (16-64) had SVQ level 4+ qualifications (Further or Higher education qualifications (or equivalent)). This is the highest proportion on record. The increase in the proportion with SVQ level 4 or higher qualifications is being driven by the highest level of workers with Degree or Professional qualifications (812,100), up 19,800 since 2015.

Chart 22: Proportion of 16-64 year olds in Employment by Highest Qualifications, Scotland

Those with SVQ level 4 or higher qualifications are the largest group in Scotland and the UK (49.2% and 43.4% respectively). The general trend towards higher level qualifications is similar for Scotland and the UK, with this being the first year in which SVQ level 4 or higher was the largest group in the UK.

People with Further and Higher education qualifications ( SVQ level 4+) have higher employment rates than those with lower SVQ level qualifications

Chart 23: Employment Rates (16-64) by Highest Qualification, Scotland

Those with SVQ level 4+ qualifications have higher employment rates than those with lower SVQ level qualifications.

In 2016, the employment rate for those with SVQ level 4+ qualifications (82.3%) is 34.4 percentage points higher than the employment rate for those with below SVQ level 2 qualifications and 12.2 percentage points higher than those with SVQ 2-3 qualifications.

The employment rate for those with SVQ level 4+ qualifications varies by local authority. The local authorities with the highest employment rates for those with SVQ level 4+ qualifications are Falkirk (89.1%), Argyll and Bute (87.4%) and Na h-Eileanan Siar (87.3%).

35.8 per cent (757,000) of workers in Scotland aged 25-64 were graduates in 2016 - the highest on record

Chart 24: Proportion of Graduates (25-64) in Employment, Scotland

The proportion of 25-64 year olds in Scotland who were graduates in 2016 was the highest seen since the series began in 2004. This was driven by increases in 18 local authority areas over the year.

The largest increases were seen in the Orkney Islands (up 6.5 percentage points to 19.5%), Clackmannanshire (up 6.4 percentage points to 28.8%) and South Lanarkshire (up 5.8 percentage points to 33.4%).

Decrease in medium-low and low skilled occupations in recent years

Chart 25: Changes in Employment Levels since 2004 by Occupational Skill, Scotland

Between 2004 and 2016 there has been a large increase in high skilled occupations ^[11] (for example functional management ( e.g. in finance, marketing, public finance) and medium-high skill occupations ( e.g. health associate professional occupation e.g nurse), compared with a decline in low skill (e.g bar staff, cleaning) and medium low skill occupations ( e.g. sales assistance, retail cashier).

The proportion of 16-64 year olds in employment who received job-related training decreased by 3.0 percentage points over the year

The proportion of 16-64 year olds in Scotland who were in employment and received job-related training decreased over the year from 25.8 per cent in 2015 to 22.8 per cent in 2016.

Chart 26: Proportion of People in Employment Receiving Job-Related Training, Scotland

The proportion of those receiving job-related training decreased over the year in 20 local authorities over the year while the proportion in the remaining 12 local authorities increased.

Statistically significant changes were seen in Aberdeen City (down 6.6 percentage points from 33.4% to 26.8%), Aberdeenshire (down 6.7 percentage points from 28.4% to 21.7%), Falkirk (down 8.7 percentage points from 28.9% to 20.3%), North Lanarkshire (down 6.1 percentage points from 20.1% to 14.0%), Perth and Kinross (down 5.8 percentage points from 29.4% to 23.6%), South Lanarkshire (down 6.2 percentage points from 23.3% to 17.1%), West Lothian (down 10.8 percentage points from 30.4% to 19.6%) as well as Scotland overall (down 3.0 percentage points from 25.8% to 22.8%).

1.2 Unemployment

People aged 16 and over are classed as being unemployed, under the ILO definition, if they are: not in employment, would like a job, have actively sought work in the previous four weeks prior to their LFS interview and are available to start work within the next fortnight; or are out of work and have accepted a job which they are waiting to start in the fortnight following their LFS interview.

Unemployment rate in Scotland decreased by 1.0 percentage point over the year to 4.8 per cent in 2016, lower than the UK rate

Chart 27: Unemployment Rate (16+), Scotland and UK

The unemployment rate in Scotland in 2016 was 4.8 per cent, lower than the UK rate of 4.9 per cent.

Over the year, the rate has decreased in both Scotland and the UK (down 1.0 and 0.4 percentage points respectively).

Scotland's unemployment rate has decreased slightly since 2008 while it decreased by 0.8 percentage points in the UK.

There were 131,400 people aged 16 or over who were unemployed in Scotland, a decrease of 27,600 over the year. This was mainly due to a decrease in the number of men who were unemployed, down 18,400 over the year.

Unemployment rates decreased across the majority of Scotland's local authorities over the year to 2016

Model Based Unemployment ^[12] ( MBU) rates decreased in 26 of Scotland's 32 local authorities over the year.

In 2016, the highest MBU rates were seen in North Ayrshire (7.8%), Dundee City (7.0%), East Ayrshire and Glasgow City (both 6.5%) and the lowest rates were seen in Orkney Islands (2.6%), Shetland Islands (2.8%) and Perth and Kinross (3.4%)

Over the year MBU rates decreased in 26 of the 32 local authority areas while 6 saw an increase in their unemployment rates. Statistically significant changes were seen in Aberdeenshire (up 1.1 percentage point from 2.7% to 3.8%), Fife (down 1.7 percentage points from 6.6% to 4.9%), Glasgow City (down 2.2 percentage points from 8.7% to 6.5%), Inverclyde (down 2.1 percentage points from 7.8% to 5.7%), North Lanarkshire (down 2.1 percentage points from 6.9% to 4.8%), West Lothian (down 1.5 percentage points from 5.8% to 4.3%) and for Scotland overall (down 1.0 percentage point from 5.8% to 4.8%).

MBU rates have decreased in 16 of the 32 local authority areas since 2008, increased in 13 local authority areas and 3 remained unchanged. Statistically significant changes were seen in Aberdeen City (up 1.8 percentage points from 3.6% to 5.4%) and Aberdeenshire (up 1.3 percentage points from 2.5% to 3.8%).

1.2.1 Gender

Chart 28: Unemployment Rate (16+) by Gender, Scotland

The unemployment (16+) rate for men in Scotland decreased by 1.3 percentage points from 6.5 per cent in 2015 to 5.2 per cent in 2016, driving the decrease in the overall unemployment rate over the same period (down 1.0 percentage point from 5.8% to 4.8%).

The unemployment rate for women also decreased over the year from 5.1 per cent to 4.4 per cent (0.6 percentage point decrease).

1.2.2 Age

The youth unemployment rate in Scotland decreased by 2.3 percentage points over the year to 12.0 per cent in 2016

The youth (16-24) unemployment rate in Scotland is the highest of all age groups at 12.0 per cent (lower than the UK rate of 13.3 per cent).

Chart 29: Unemployment Rate (16+) by Age, Scotland

The youth unemployment rate in Scotland decreased by 2.3 percentage points over the year and by 1.5 percentage points since 2008, while the UK rate has decreased by 1.7 percentage points since 2008 and by 1.0 percentage point over the year.

Unemployment rates have been generally decreasing for all age groups between 2012 and 2016.

10.7 per cent of people aged 16-19 were NEET in 2016, increase of 1.1 percentage points over the year

The number of 16-19 year olds who were not in education, employment or training ( NEET) in 2016 increased by 2,000 over the year to 26,000 ^[13] . The proportion of 16-19 year olds who were NEET in 2016 was 10.7 per cent. This is an increase of 1.1 percentage points over the year, although this difference is not statistically significant.

Chart 30: Proportion who were NEET (16-19) by Gender, Scotland

The proportion of men aged 16-19 who were NEET increased by 2.2 percentage points over the year to 12.7 per cent, driving the increase in the overall NEET proportion, while the proportion of women aged 16-19 who were NEET decreased by 0.2 percentage points to 8.7% over the year. Neither of these changes were statistically significant.

Increase in the number of 16-19 year olds who were NEET in 2016 was driven by a rise in 16-17 year olds who were NEET

There is a clear difference between the trend for 16-17 year old and 18-19 year old NEET rates.

Chart 31: Proportion who were NEET (16-19) by Age, Scotland

Over the year, there has been an increase in the number of 16-17 year olds who were NEET, whereas the number of 18-19 year olds who were NEET remained fairly constant. The increase for 16-17 year olds over the year is predominatly due to an increase in the estimated number who were economically inactive.

The APS is not able to provide reliable data for those who are NEET at local area level. The Scottish Government in partnership with Skills Development Scotland have developed a new participation measure to address this. Information on this measure is available at:

https://www.skillsdevelopmentscotland.co.uk/publications-statistics/statistics/participation-measure/

1.2.3 Duration of Unemployment

40.3 per cent of all unemployed people in Scotland have been unemployed for more than 6 months

Chart 32: Proportion of People (16+) who are Unemployed by Duration, Scotland

Of the 131,400 unemployed people in Scotland in 2016, 77,800 (59.7%) were unemployed for less than six months.

The proportion that have been unemployed for less than 6 months has decreased by 8.6 percentage points since 2008, indicating a shift to lengthier durations of unemployment.

The 16-24 age group are least likely to be unemployed for more than 12 months (18.5%), while those aged 50+ are most likely to be unemployed for 12 months or more (42.6%).