Scotland's National Strategy for Economic Transformation: equality position statement

7. NSET and the Protected Characteristics

The Scottish Government is mindful of its obligation under the Equality Act 2010 (Specific Duties) (Scotland) Regulations 2012. Section 5 of the Equality Act 2010 places a requirement on public authorities to carry out an EQIA and there is a general duty for listed public authorities to promote equality by advancing equality of opportunity; eliminating unlawful discrimination, harassment and victimisation; and fostering good community relations between persons who share a protected characteristic and those who do not. To deliver this obligation, the Scottish Government promotes a mainstreaming approach to equality to ensure that the impact of its policies, programmes and legislation on groups of people who share a protected characteristic are assessed by all areas and at all levels.

We must consider how the decisions we make meet the three needs of the general equality duty. Where any negative impacts are identified we will seek to address and mitigate them, and we will seek to advance equality through NSET's programmes by ensuring that any new or changing policy is informed and shaped by an Equality Impact Assessment (EQIA).

NSET has been informed by evidence, including evidence concerning economic inequalities and the experiences of people with different protected characteristics in relation to Scotland's economy. A summary of evidence relevant to each protected characteristic is provided below, along with selected consultation responses and information gained through stakeholder engagement. We also list some of the key NSET projects and their underpinning actions that we anticipate will make a significant contribution to addressing the issues identified.

7.1 Age

Older People (Aged 50+)

What the evidence tells us:

• Scotland has an ageing population. Scotland's population is increasing and older people represent a growing share^[14]. People are also working into older ages^[15].
• There is considerable geographical variation in the age profile of the population, with lowest variation in the cities^[16] and a greater proportion of older people in rural and island areas^[17]. This uneven age structure can be attributed to falling birth rates, an increase in life expectancy, and migration.
• Older people are among those who have experienced disproportionate health, social and economic impacts as a result of the COVID-19 pandemic^[18]. In the year to April 2020-March 2021, the employment rate for people aged 50-64 fell by 2.6 percentage points, the largest decrease of any age group^[19].
• During COVID-19, stereotypes about older people in relation to redundancy and caring responsibilities affected employer behaviour^[20].
• Despite general increase in internet access at home (42% in 2003; 89% in 2019)^[21], digital participation is generally lower among the older population and average internet use decreases with age^[22].
• Those aged over 50 face employment barriers in three key areas: communities, access to services and financial security^[23]. Ageism, exclusion and lack of willingness to recognise the skills and experience of the older workforce also present employment barriers for this group^[24].
• To promote ongoing employment and address employment barriers for older people there is a need for^[25]:
  • access to, and increased awareness of, flexible employment opportunities and reduced working hours;
  • financial security (including pension-related information);
  • life changes support and flexible measures addressing issues related to rising retirement age, such as caring responsibilities;
  • ongoing training and education opportunities that are (financially) accessible to older people.

Examples of NSET Programmes of Action and Projects that will promote equality:

Entrepreneurial People and Culture

Project 2: Create a world class entrepreneurial infrastructure of institutions and programmes providing a high intensity pathway for high growth companies. For example, through providing access to support programmes from amongst the most under-represented groups, particularly women, those on low incomes and those without qualifications at further or higher education.

Project 4: Build an entrepreneurial mindset in every sector of our economy. For example, to proactively present business start-up opportunities to those at risk of redundancy through the PACE programme.

Productive Businesses and Regions

Project 8: Improve connectivity infrastructure and digital adoption across the economy. For example, to create better transport connectivity with sustainable, smart and cleaner transport options; and to provide an efficient and resilient digital infrastructure, including continued investment in improved broadband, fibre and mobile coverage.

Project 9: Upskill business and public sector leaders, pioneering new approaches to driving productivity improvements. For example, to launch the Centre for Workplace Transformation in 2022 to support experimentation in ways of working post-pandemic to deliver good jobs, recognising the importance of the way workplaces operate and best use of employees' skills to enhance business performance.

Project 10: Realise the potential of the different economic and community assets and strengths of Scotland's regions. For example, working with Regional Economic Partnerships to deliver strong regional economic policies and tailor interventions to evidenced regional strengths and opportunities, and introducing Community Wealth Building legislation that builds on the successes and learnings of all of the Scottish Government community wealth building local and regional pilot areas in urban and rural Scotland.

Skilled Workforce

Project 11: Adapt the education and skills system so that it is more agile and responsive to our economic needs and ambitions. For example, to deliver the forthcoming national strategy on adult learning that will ensure that community learning is more consistent and comprehensive; to develop more, shorter industry facing courses; and to implement the next phase of the Green Jobs Workforce Academy and launch a new skills guarantee for workers in carbon intensive industries, providing career guidance and training opportunities, enabling people to seek employment in other sectors.

Project 12: Support and incentivise people, and their employers, to invest in skills and training throughout their working lives. For example, to implement a lifetime upskilling and retraining offer that is more straightforward to access for people and business; to target more skills investment and support to working age people in poverty or at risk of moving into poverty; to work with learners and delivery partners to understand the steps to take to improve training provision, ensuring that access to training for more marginalised groups is made as easy as possible, including in areas such as training at times that suit people with caring responsibilities, with additional support needs or that fit around current jobs; to work with employers and unions to develop a new Skills Pact and improve investment in skills and training, ensuring provision better meets the needs of both employers and employees.

Project 13: Expand Scotland's available labour pool, at all skills levels. For example, to systematically address Scotland's labour market inactivity challenges through assessing trends within different labour market inactive groups and understand what steps can be taken to bring more individuals into the labour market – including through the use of child-care and transport provision, part-time / flexible working, support for employees with disabilities, and business start-up and work from home opportunities.

A Fairer and More Equal Society

Project 14: Tackle poverty through fairer pay and conditions. For example, to apply Fair Work conditionality to grants, requiring payment of real Living Wage, and channels for effective workers' voice by summer 2022, and determine how these conditions can be applied to non-departmental public bodies, and to further extend Fair Work conditionality; and to engage with employers and trade unions in sectors where low pay and precarious work can be most prevalent to embed fair work practices and achieve higher standards of pay, better security of work, and greater union representation.

Project 15: Eradicate structural barriers to participating in the labour market. For example, to simplify the employability system by implementing No One Left Behind; to ensure that people receive aligned and integrated offer of support to help them on their journey towards, into or progressing within the labour market and help them thrive and sustain employment for the long term; to take further steps to remove barriers to employment and career advancement for disabled people; and, building on the principles of the Young Person's Guarantee, develop an all age guarantee of support for those most disadvantaged in the labour market.

Young People

What the evidence tells us:

• Following the 2008 recession, there was a substantial decrease in the employment rate for people aged 16-24 and the COVID-19 pandemic has also adversely impacted this age group^[26]. The employment rate for young people had been gradually increasing since April 2013-March 2014 but has decreased significantly since April 2018-March 2019^[27].
• Young people are especially vulnerable to unemployment and long-term employment 'scarring'^[28]. They are more likely to earn less than the real Living Wage^[29], and are more likely to be financially vulnerable and in unmanageable debt^[30].
• Young people are more likely to work in sectors hardest-hit by COVID-19 such as retail, leisure and entertainment^[31], and they are less likely to be in contractually secure employment^[32].
• With the arrival of the pandemic, young people in Scotland aged 16-24 experienced the largest increase in unemployment rate across all age groups, rising by 3.6 percentage points in the year to April 2020 - March 2021, taking the rate to 12.5%^[33].
• In 2020/21, the employment rate for young people aged 16-24 was 52.8%, around 25 percentage points lower than the employment rate for the overall (16-64 years) population in Scotland^[34]. This is partly due to greater education participation for this group^[35].
• 12.4% of young people aged 16-24 were not in employment, education or training (NEET) during the period from April 2020 to March 2021^[36]. Whilst this is an increase of 1.9 percentage points from the previous year, it represents a decrease compared to the peak period following the 2008 recession^[37].
• Whilst historically decreasing across all age groups, from April 2020 to March 2021, the underemployment rate^[38] was highest for young people (double the national average^[39]).
• There has been significant improvement in business start-ups in the younger age groups. Scotland's Total Early-stage Entrepreneurial Activity (TEA) rate (2018-2020 average) for 18-29 age group (9.7%) is higher compared to UK nations^[40]. It remains unclear whether this is caused by young people's interest in pursuing an entrepreneurial career or by a lack of secure, well-paid employment opportunities.
• Care experienced young people and care leavers are more likely to face challenges in the labour market than young people as a whole. They are over three times more likely not to have a job by the age of 26 and earn incomes which are 27% lower on average than their non-care experienced peers. They are also over one and a half times more likely to experience financial difficulties and are nearly twice as likely to have no internet access at home^[41].

Stakeholder feedback

Stakeholders have highlighted that workplaces upholding and implementing the principles of Fair Work are particularly important to ensuring that young people reach their full potential in the labour market, and called for a long-term commitment to the Developing Young Workforce (DYW) scheme for the length of the NSET.

Examples of NSET Programmes of Actions and Projects that will advance equality:

Entrepreneurial People and Culture

Project 1: Embed first rate entrepreneurial learning across the education and skills systems. For example, to promote the best available project-based entrepreneurial learning across the school and post-16 education curricula by building a new partnership between business and our education system, offering every school, college and university a network of relationships with high quality start-ups and entrepreneurs as inspirational role models and mentors for young people, with initial focus of this initiative on schools in areas of multiple deprivation; to embed entrepreneurship in the Young Person's Guarantee; and to adapt and review Scotland's apprenticeship system so that it is available for start-ups and early scale-ups to use, focussing in particular on providing opportunities for under-represented groups and on specific skills, such as digital.

Project 2: Create a world class entrepreneurial infrastructure of institutions and programmes providing a high intensity pathway for high growth companies. For example, to widen access to entrepreneurship by providing a clear entry point for very early stage founders, including those leaving formal education and supporting them to conceive new ideas, start companies, design and develop products and support early tests of market traction; and to provide access to support programmes from amongst the most under-represented groups, such as those without qualifications at further or higher education.

Productive Businesses and Regions

Project 8: Improve connectivity infrastructure and digital adoption across the economy. For example, to provide an efficient and resilient digital infrastructure which includes continued investment in improved broadband, fibre and mobile coverage for residential and business premises.

Skilled Workforce

Project 11: Adapt the education and skills system to make it more agile and responsive to our economic needs and ambitions. For example, to develop proposals for a national digital academy focused around the provision of SCQF level 6 qualifications including Highers, to open up access to a wide array of subjects to a wider array of learners. This is likely to include broadening young people's access to subjects which may not be available locally, as well as supporting post-school learners to access learning later in life and around other commitments.

Project 12: Support and incentivise people, and their employers, to invest in skills and training throughout their working lives. For example, to target more skills investment and support to working age people in poverty or at risk of moving into poverty.

Project 13: Expand Scotland's available talent pool, at all skills levels, to give employers the skills pipeline they need to take advantage of opportunities. For example, we will systemically address Scotland's labour market inactivity challenges by assessing trends within labour market inactive groups and understand what steps can be taken to bring more individuals into the labour market – including through the use of child-care and transport provision, part-time / flexible working, support for employees with disabilities, and business start-up and work from home opportunities.

A Fairer and More Equal Society

Project 14: Tackle poverty through fairer pay and conditions. For example, to apply Fair Work conditionality to grants, requiring payment of real Living Wage, and channels for effective workers' voice by summer 2022, and determine how these conditions can be applied to non-departmental public bodies, and to further extend Fair Work conditionality; to deliver on the commitment to require payment of the real Living Wage in Scottish Government contracts from October 2021; and to work with employers and trade unions in sectors where low pay and precarious work can be most prevalent (including leisure and hospitality, and early learning and childcare) to embed fair work practices and achieve higher standards of pay, better security of work and greater union representation.

Project 15: Eradicate structural barriers to participating in the labour market. For example, to simplify the employability system by implementing No One Left Behind; to ensure that people receive aligned and integrated offer of support to help them on their journey towards, into or progressing within the labour market and help them thrive and sustain employment for the long term; to take further steps to remove barriers to employment and career advancement for disabled people, women, those with care experience and people from minority ethnic groups; and, building on the principles of the Young Person's Guarantee, to develop an all age guarantee of support for those most disadvantaged in the labour market, with an initial focus on parents from the six priority family groups^[42] at risk of child poverty.

7.2 Disability

What the evidence tells us:

Employment

• It is estimated that around one fifth of Scotland's working-age population is disabled^[43]. The prevalence of disability increases with age^[44].
• People with disabilities are less likely to be in employment than non-disabled people and earn less on average than non-disabled people^[45].
• The employment rate for people with disabilities was estimated at 47.4% (April 2020-March 2021), significantly lower than the employment rate for non-disabled people (80.2%)^[46].
• The disability employment gap in Scotland^[47] narrowed in the pre-pandemic period and over the latest year (to Oct 2020 – Sep 2021), but remains large at an estimated 31.0 percentage points^[48].
• People with disabilities are employed across all occupation types and sectors of Scotland's economy, however they are more likely to work in lower paid occupations^[49].
• Even pre-pandemic, compared to non-disabled people, people with disabilities were less likely to have access to fair work^[50]. They are also more likely to be underemployed than non-disabled people^[51].
• Available data also indicates that the proportion of disabled sole traders is relatively low in Scotland. In 2014, only 9% of SMEs (between 1 and 249 employees) in Scotland had an owner with a disability or long-standing illness, representing a decrease of 2% since 2012^[52].
• Employment barriers for people and parents with disabilities include health needs, caring responsibilities, unaffordable childcare, transport, inaccessible job adverts and application processes, workplace discrimination, lack of flexible working and adequate support and effects on benefits.
• To address employment barriers for people with disabilities and promote ongoing employment for those able to undertake paid work, as well as enabling people with disabilities to work more hours and take on roles that are better paid or more suited to their skills, there is a need for a greater availability of flexible working and remote working^[53].

Parents with disabilities

• Parents with disabilities are less likely to be employed compared to non-disabled parents, with those in employment tending to work fewer hours^[54]. Mothers with disabilities are particularly unlikely to work full-time^[55].
• Children in households with a person with disabilities are more likely to live in poverty, and being in work sometimes does not prevent poverty^[56].

Education and training

• People with disabilities are more likely to have no or low qualifications compared to non-disabled people and are less likely than non-disabled people to have qualifications at degree level or above^[57]. Even with a degree or higher qualification, people with disabilities are still less likely to be employed than non-disabled people without one^[58].
• Pupils with disabilities have lower attendance levels at school and are more likely to be excluded^[59]. Young people with disabilities are twice as likely not to be in a positive destination (education, employment or training) six months after leaving school, and three times as likely not to be in a positive destination by the age of 19^[60].

COVID-19 impact

• The COVID-19 pandemic has posed additional barriers on disabled people's employment and exacerbated pre-existing barriers for some^[61], partly due to people with disabilities being more likely to work in industries hardest hit by the pandemic such as hospitality and distribution^[62].
• At UK level, there is evidence to suggest that employees with disabilities were more likely to be made redundant during the pandemic than non-disabled employees^[63]. Disabled employees were also more likely to have experienced a decrease in hours worked, and were more likely to report being asked to take leave - which includes unpaid leave^[64].
• Analysis by the Joseph Rowntree Foundation found that around 56% of disabled people in the UK who were employed at the start of 2020 had reported a loss of earnings by the middle of the year (2 percentage points more than non-disabled people)^[65]. The analysis also found that disabled people were also more likely to report they had zero earnings by mid-year^[66].
• Research published by Leonard Cheshire suggests that the economic impacts of the pandemic are expected to continue to have an adverse effect on access to employment and financial security of people with disabilities^[67].

Stakeholder feedback

Stakeholders highlighted that employers need to consider and offer a range of accessible jobs and adjustments that will meet the individual needs of (young) disabled people in the workforce. It was also suggested that the delivery of new, good, green jobs should be used to address the disability employment gap and be made available to people with disabilities and also other underrepresented groups. Stakeholders also emphasised the need to recognise the importance and economic value of informal/unpaid care and the need for the care sector to be reflected as a priority and strategic sector within the economy.

Examples of NSET Programmes of Actions and Projects that will advance equality:

Entrepreneurial People and Culture

Project 1: Embed first rate entrepreneurial learning across the education and skills systems. For example, to build a new partnership between business and our education system, offering every school, college and university a network of relationships with high quality start-ups and entrepreneurs providing inspirational role models and mentors who can show young people what can be achieved and develop a culture that celebrates entrepreneurship – with an initial focus on schools in areas of multiple deprivation; to adapt and review Scotland's apprenticeship system; and to embed entrepreneurship in the Young Person's Guarantee.

Project 2: Create a world class entrepreneurial infrastructure of institutions and programmes providing a high intensity pathway for high growth companies. For example, to set targets and focus on providing access to support programmes from amongst the most under-represented groups, particularly women, those on low incomes and those without qualifications at further or higher education. This would include the offer of financial support for those who are unable to afford time out from a full-time job or caring responsibilities to develop ideas. An early priority will be to deliver our commitment to review how we support more women into entrepreneurship.

Project 4: Build an entrepreneurial mindset in every sector of our economy. For example, to pro-actively promote business start-up opportunities to those at risk of redundancy through the PACE programme.

Productive Businesses and Regions

Project 8: Improve connectivity infrastructure and digital adoption across the economy. For example, to create better transport connectivity with sustainable, smart and cleaner transport options; and to provide an efficient and resilient digital infrastructure. This includes continued investment in improved broadband, fibre and mobile coverage for residential and business premises.

Project 9: Upskill business and public sector leaders, pioneering new approaches to driving productivity improvements. For example, to launch the Centre for Workplace Transformation in 2022 to support experimentation in ways of working post-pandemic to deliver good jobs, recognising the importance of the way workplaces operate and best use of employees' skills to enhance business performance.

Skilled Workforce

Project 11: Adapt the education and skills system to make it more agile and responsive to our economic needs and ambitions. For example, to develop proposals for a national digital academy focused around the provision of SCQF level 6 qualifications including Highers, to open up access to a wide array of subjects to a wider array of learners, supporting post-school learners to access learning later in life and around other commitments; to deliver the forthcoming national strategy on adult learning that will ensure that community learning is more consistent and comprehensive.

Project 12: Support and incentivise people, and their employers, to invest in skills and training throughout their working lives. For example, to implement a lifetime upskilling and retraining offer that is more straightforward for people and business to access; and to target more skills investment and support to working age people in poverty or at risk of moving into poverty (particularly the six priority family types) – this will be done by working with learners and delivery partners to better understand the steps we must take to improve provision, including in areas such as training at times that suit people with caring responsibilities, with additional support needs or that fit around current jobs.

Project 13: Expand Scotland's available talent pool, at all skills levels, to give employers the skills pipeline they need to take advantage of opportunities. For example, we will systemically address Scotland's labour market inactivity challenges by assessing trends within labour market inactive groups and understand what steps can be taken to bring more individuals into the labour market – including through the use of child-care and transport provision, part-time / flexible working, support for employees with disabilities, and business start-up and work from home opportunities.

A Fairer and More Equal Society

Project 14: Tackle poverty through fairer pay and conditions. For example, to apply Fair Work conditionality to grants, requiring payment of real Living Wage, and channels for effective workers' voice by summer 2022, and determine how these conditions can be applied to non-departmental public bodies, and to further extend Fair Work conditionality; to deliver on the commitment to require payment of the real Living Wage in Scottish Government contracts from October 2021; and to work with employers and trade unions in sectors where low pay and precarious work can be most prevalent (including leisure and hospitality, and early learning and childcare) to embed fair work practices and achieve higher standards of pay, better security of work, and greater union representation.

Project 15: Eradicate structural barriers to participating in the labour market. For example, to take further steps to remove barriers to employment and career advancement for disabled people, which will be set out in the forthcoming refreshed 'A Fairer Scotland for Disabled People: Employment Action Plan'; building on the principles of the Young Person's Guarantee, develop an all age guarantee of support for those most disadvantaged in the labour market; to deliver an aligned and integrated offer of support for those seeking to move towards, into or progressing within the labour market, ensuring access to the advice and services including housing, health, affordable and flexible childcare and transport offers; to simplify the employability system by implementing No One Left Behind; to set out how we will support parents to increase their incomes from employment as part of cross-government action to deliver upon the ambitious targets set through the Child Poverty (Scotland) Act 2017.

7.3 Gender Reassignment

What the evidence tells us:

• Trans people face a range of disadvantages and vulnerabilities in their everyday life and in employment^[68].
• The lives of many trans people at work remain difficult, and they face discrimination, bullying and harassment at every stage of employment, including during recruitment processes^[69].
• Some trans people find getting into work difficult or challenging, with prejudice and stereotyping having negative impacts on their employment prospects^[70].
• More than half of trans people (51%) have deliberately hidden or disguised their identity at work for fear of discrimination and one in eight trans employees (12%) has been physically attacked by a colleague or customer in the last 12 months^[71].
• LGBT+ employees experience more job dissatisfaction and less psychological safety and are more likely to report that work has a negative impact on their (mental) health^[72]. Trans people are less likely to have had a paid job in the last 12 months (65% of trans women and 57% of trans men had one)^[73].
• Trans and non-binary workers are particularly under-represented in the workforce^[74] overall.
• Barriers and challenges to the inclusion of trans and intersex employees include lack of knowledge by employers and fellow employees, insufficient line manager confidence, stigma, practical considerations (e.g. toilet facilities, uniforms), lack of support and flexible policies^[75]. Barriers to accessing employment include fear of prejudice, application forms excluding non-binary identities, difficulties obtaining references and proof of qualification matching gender and new name, lack of awareness and transphobia from interview panels and feeling unable to be open about trans identity when applying for jobs^[76].
• Trans students experience harassment and discrimination at HE institutions and for some this has a significant negative impact on their studies, future plans and skills.

Examples of NSET Programmes of Actions and Projects that will advance equality:

Entrepreneurial People and Culture

Project 1: Embed first rate entrepreneurial learning across the education and skills systems. For example, to build a new partnership between business and our education system, offering every school, college and university a network of relationships with high quality start-ups and entrepreneurs providing inspirational role models and mentors who can show young people what can be achieved and develop a culture that celebrates entrepreneurship – with an initial focus on schools in areas of multiple deprivation; and to adapt and review Scotland's apprenticeship system so that it is available for start-ups and early scale-ups to use, focussing in particular on providing opportunities for women and other under-represented groups and on specific skills, such as digital.

Project 2: Create a world class entrepreneurial infrastructure of institutions and programmes providing a high intensity pathway for high growth companies. For example, to set targets and focus on providing access to support programmes from amongst the most under-represented groups, particularly women, those on low incomes and those without qualifications at further or higher education. This would include the offer of financial support for those who are unable to afford time out from a full-time job or caring responsibilities to develop ideas.

Skilled Workforce

Project 11: Adapt the education and skills system to make it more agile and responsive to our economic needs and ambitions. For example, to develop proposals for a national digital academy focused around the provision of SCQF level 6 qualifications including Highers, to open up access to a wide array of subjects to a wider array of learners, supporting post-school learners to access learning later in life and around other commitments; to deliver the forthcoming national strategy on adult learning that will ensure that community learning is more consistent and comprehensive.

Project 12: Support and incentivise people, and their employers, to invest in skills and training throughout their working lives. For example, to implement a more straightforward lifetime upskilling and retraining offer; to ensure that access to training for more marginalised groups is made as easy as possible, we will work with learners and delivery partners to better understand the steps we must take to improve provision.

Project 13: Expand Scotland's available talent pool, at all skills levels, to give employers the skills pipeline they need to take advantage of opportunities. For example, to systemically address Scotland's labour market inactivity challenges by assessing trends within labour market inactive groups and understand what steps can be taken to bring more individuals into the labour market – including through the use of child-care and transport provision, part-time / flexible working, support for employees with disabilities, and business start-up and work from home opportunities.

Fairer and More Equal Society

Project 14: Tackle poverty through fairer pay and conditions. For example, to apply Fair Work conditionality to grants, requiring payment of real Living Wage, and channels for effective workers' voice by summer 2022, and determine how these conditions can be applied to non-departmental public bodies, and to further extend Fair Work conditionality.

Project 15: Eradicate structural barriers to participating in the labour market. For example, building on the principles of the Young Person's Guarantee, develop an all age guarantee of support for those most disadvantaged in the labour market; and to deliver an aligned and integrated offer of support for those seeking to move towards, into or progressing within the labour market, ensuring access to the advice and services including housing and health.

7.4 Marriage and Civil Partnership

What the evidence tells us:

• Relevant evidence available for this group is relatively limited, however the available evidence demonstrates links between poverty and income inequality in Scotland based on marital status.
• Relative poverty rates are highest for single, divorced and separated adults, and lowest for married adults. In 2017-20^[77], the relative poverty rate after housing costs was highest for single adults (27%) and divorced (or separated) adults (27%). Married adults were the least likely to be in poverty (13%), and widowed and cohabiting adults were in the middle (19% and 19%).
• Poverty rates among widowed and divorced/separated adults largely decreased over the long term, whereas the trend for singles, cohabiting and married adults was broadly flat over time^[78].
• There are clear gender impacts associated with housing wealth following divorce and household dissolution. Divorced men are more likely to re-enter home ownership and less likely to suffer prolonged financial hardship in the long term than women^[79]. In the event of separation or the loss of a partner, women can be especially vulnerable to entering poverty.
• Lone parents, the majority of whom are women, are more likely to be in poverty (38% of children in lone parent families were in relative poverty in 2017-20 vs 24% of all children). In addition, 40% of children in lone parent households in relative poverty also have a person with disabilities at home – amplifying barriers to overcome poverty^[80]. Lone parents also struggle to receive the Child Maintenance that they are entitled to from the non-resident parent^[81].

Examples of NSET Programmes of Actions and Projects that will advance equality:

Entrepreneurial People and Culture

Project 1: Embed first rate entrepreneurial learning across the education and skills systems. For example, to build a new partnership between business and our education system, offering every school, college and university a network of relationships with high quality start-ups and entrepreneurs providing inspirational role models and mentors who can show young people what can be achieved and develop a culture that celebrates entrepreneurship – with an initial focus on schools in areas of multiple deprivation.

Skilled Workforce

Project 11: Adapt the education and skills system to make it more agile and responsive to our economic needs and ambitions. For example, to develop proposals for a national digital academy focused around the provision of SCQF level 6 qualifications including Highers, to open up access to a wide array of subjects to a wider array of learners, supporting post-school learners to access learning later in life and around other commitments; to deliver the forthcoming national strategy on adult learning that will ensure that community learning is more consistent and comprehensive.

Project 12: Support and incentivise people, and their employers, to invest in skills and training throughout their working lives. For example, to implement a more straightforward lifetime upskilling and retraining offer; and to target more skills investment and support to working age people in poverty or at risk of moving into poverty (particularly the six priority family types). Ensuring that access to training for more marginalised groups is made as easy as possible, we will work with learners and delivery partners to better understand the steps we must take to improve provision, including in areas such as training at times that suit people with caring responsibilities, with additional support needs or that fit around current jobs.

A Fairer and More Equal Society

Project 14: Tackle poverty through fairer pay and conditions. For example, to apply Fair Work conditionality to grants, requiring payment of real Living Wage, and channels for effective workers' voice by summer 2022, and determine how these conditions can be applied to non-departmental public bodies, and to further extend Fair Work conditionality; and to engage with employers and trade unions in sectors where low pay and precarious work can be most prevalent to embed Fair Work practices and achieve higher standards of pay, better security of work, and greater union representation.

Project 15: Eradicate structural barriers to participating in the labour market. For example simplifying the employability system by implementing No One Left Behind; to ensure that people receive aligned and integrated offer of support to help them on their journey towards, into or progressing within the labour market and help them thrive and sustain employment for the long term.

7.5 Pregnancy and Maternity

What the evidence tells us:

• The relationship between lack of material resources and poor health, including during pregnancy, is well established, and the birth of a new baby can result in those close to the poverty line falling below it^[82]. Pregnancy brings a period of sudden increased financial pressure and sustained money worries have been reported following a birth of a baby^[83], increasing a risk of child poverty^[84].
• Households with children aged 0-4 are at high risk of poverty^[85]. The risk, however, is much higher when the youngest child is aged less than one year old. Families with a new child are more likely to enter poverty^[86].
• Motherhood has a significant impact on the number of hours that some mothers can work which then affects their pay and income relative to non-mothers and men^[87]. Mothers suffer a big long-term pay penalty from part-time working, on average earning about 30% less per hour than similarly educated fathers^[88]. Some of this wage gap can be attributed to mothers being more likely to work part-time, or taking time out of the labour market altogether.
• Young mothers tend to have lower educational levels compared to older mothers when their first child is born^[89], which impacts on subsequent career prospects. They are less likely to be in work when their first child is 10 months old, with education being found to be a key predictor of later employment^[90]. When in work, they are more likely to earn a low income and more likely to receive social security entitlements^[91].
• Even before the pandemic, lone parents, the majority of whom are women, were more likely to be in unmanageable debt and/or financially vulnerable and more likely to live in deprived areas^[92].
• Single mothers with low qualifications are particularly concentrated in sectors most impacted by the pandemic^[93]. Households with only one earner are more vulnerable to the impacts of earnings reductions or job losses and lone parents may be less likely to have someone to share childcare with, making participation in paid work challenging^[94].
• Compared with fathers, mothers spend less time in paid work and more time on household responsibilities, and the differences in work patterns between mothers and fathers have grown since before the pandemic^[95].
• Since the start of the pandemic, mothers are more likely than fathers to have left or lost their job, or to have been furloughed^[96], and spent on average two hours longer per day caring for children during lockdown compared to fathers^[97].

Stakeholder feedback

Some of the evidence gathered above was reflected in the response to the NSET public consultation and stakeholder engagement. Stakeholders emphasised the importance of unpaid care and the care sector for gender equality, and more broadly as part of the foundation economy in many communities across Scotland. Stakeholders called for the care sector to be reflected in the strategy as a priority and strategic sector, and, with woman being more likely to take unpaid leave to care for children than men, they highlighted that an action on affordable childcare was critical for a gender-equal economic recovery.

Examples of NSET Programmes of Actions and Projects that will advance equality:

Entrepreneurial People and Culture

Project 1: Embed First Rate Entrepreneurial Learning Across the Education and Skills Systems. For example, to build a new partnership between business and our education system, offering every school, college and university a network of relationships with high quality start-ups and entrepreneurs providing inspirational role models and mentors who can show young people what can be achieved and develop a culture that celebrates entrepreneurship – with an initial focus on schools in areas of multiple deprivation; and to adapt and review Scotland's apprenticeship system so that it is available for start-ups and early scale-ups to use, focussing in particular on providing opportunities for women and other under-represented groups and on specific skills, such as digital.

Project 2: Create a world class entrepreneurial infrastructure of institutions and programmes providing a high intensity pathway for high growth companies. For example, to set targets and focus on providing access to support programmes from amongst the most under-represented groups, particularly women, those on low incomes and those without qualifications at further or higher education. This would include the offer of financial support for those who are unable to afford time out from a full-time job or caring responsibilities to develop ideas. An early priority will be action to scope and deliver our new Women's Business Centre.

Project 4: Build an entrepreneurial mindset in every sector of our economy. For example, to pro-actively promote business start-up opportunities to those at risk of redundancy through the PACE programme.

Productive Businesses and Regions

Project 8: Improve connectivity infrastructure and digital adoption across the economy. For example, to create better transport connectivity with sustainable, smart and cleaner transport options; and to provide an efficient and resilient digital infrastructure. This includes continued investment in improved broadband, fibre and mobile coverage for residential and business premises.

Project 9: Upskill business and public sector leaders, pioneering new approaches to driving productivity improvements. For example, to launch the Centre for Workplace Transformation in 2022 to support experimentation in ways of working post-pandemic to deliver good jobs, recognising the importance of the way workplaces operate and best use of employees' skills to enhance business performance.

Skilled Workforce

Project 11: Adapt the education and skills system to make it more agile and responsive to our economic needs and ambitions. For example, to develop proposals for a national digital academy focused around the provision of SCQF level 6 qualifications including Highers, to open up access to a wide array of subjects to a wider array of learners, supporting post-school learners to access learning later in life and around other commitments; to deliver the forthcoming national strategy on adult learning that will ensure that community learning is more consistent and comprehensive.

Project 12: Support and incentivise people, and their employers, to invest in skills and training throughout their working lives. For example, to implement a more straightforward lifetime upskilling and retraining offer; and to target more skills investment and support to working age people in poverty or at risk of moving into poverty (particularly the six priority family types). Ensuring that access to training for more marginalised groups is made as easy as possible, we will work with learners and delivery partners to better understand the steps we must take to improve provision, including in areas such as training at times that suit people with caring responsibilities, with additional support needs or that fit around current jobs. We will also develop a new Skills Pact to underpin our commitment to strong partnership working with both employers and unions. The Pact will build on the collaborative approach we took with business to focus on action we can take together to improve investment in skills and training and ensure provision better meets the needs of employers and employees. As part of this, we will work collaboratively with employers and unions to explore how we can increase employer investment in upskilling and retraining.

Project 13: Expand Scotland's available talent pool, at all skills levels, to give employers the skills pipeline they need to take advantage of opportunities. For example, to systemically address Scotland's labour market inactivity challenges by assessing trends within labour market inactive groups and understand what steps can be taken to bring more individuals into the labour market – including through the use of child-care and transport provision, part-time / flexible working, support for employees with disabilities, and business start-up and work from home opportunities.

A Fairer and More Equal Society

Project 14: Tackle poverty through fairer pay and conditions. For example, to apply Fair Work conditionality to grants, requiring payment of real Living Wage, and channels for effective workers' voice by summer 2022, and determine how these conditions can be applied to non-departmental public bodies, and to further extend Fair Work conditionality; to deliver on the commitment to require payment of the real Living Wage in Scottish Government contracts from October 2021; and to work with employers and trade unions in sectors where low pay and precarious work can be most prevalent (including leisure and hospitality, and early learning and childcare) to embed Fair Work practices and achieve higher standards of pay, better security of work, and greater union representation.

Project 15: Eradicate structural barriers to participating in the labour market. For example, to set out how we will support parents to increase their incomes from employment as part of cross-government action to deliver upon the ambitious targets set through the Child Poverty (Scotland) Act 2017; to simplify the employability system by implementing No One Left Behind; to ensure that people receive aligned and integrated offer of support to help them on their journey towards, into or progressing within the labour market and help them thrive and sustain employment for the long term; to take further steps to remove barriers to employment and career advancement for women that will be set out in the forthcoming Gender Pay Gap Action plan; and, building on the principles of the Young Person's Guarantee, to develop an all age guarantee of support for those most disadvantaged in the labour market, with an initial focus on parents from the six priority family groups at risk of child poverty.

7.6 Race and Ethnicity

What the evidence tells us:

• Compared with the UK as a whole, Scotland's population is less ethnically diverse and its minority ethnic population is less likely to be born in the UK^[98].
• Compared with the white population, minority ethnic groups are more likely to work in accommodation and food services^[99], be more likely to earn low income^[100] and less likely to have savings^[101].
• Poverty rates for people in minority ethnic households are higher than for the general population in Scotland and minority ethnic people are more likely to be in relative poverty after housing costs^[102]. Minority ethnic families are also most at risk of child poverty (38% of children in minority ethnic families were in relative poverty in 2017-20 compared to 24% of all children in Scotland) and families from some minority ethnic groups are more likely to have three or more children, putting them at higher risk of child poverty^[103].
• Some minority ethnic households are also more likely to live in the most deprived areas in Scotland compared to white Scottish/British households^[104].
• People with multiple protected characteristics (e.g. someone from a minority ethnic group who also has a disability) can face heightened barriers to employment. For example, 2019 data shows that a non-disabled white person is more than twice as likely to be in employment than a person with a disability from a minority ethnic group^[105].
• While the UK's minority ethnic employment gap^[106] has been narrowing consistently over time, there is less evidence of that same progress in Scotland^[107]. However, this may also be partly due to small survey samples in Scotland leading to greater data volatility in Scotland than in the UK.
• The employment rate for people from minority ethnic groups in Scotland is consistently lower than the employment rate for white people^[108]. The employment rate for the minority ethnic^[109] population aged 16 to 64 was estimated at 65.1% during the period April 2020-March 2021^[110], significantly lower than the rate for the white population (73.2%) – an employment rate gap of 8.2 percentage points.
• The minority ethnic employment gap is much larger for women than men. In Scotland, the minority ethnic employment gap was estimated at approximately 13.2 percentage points for women and at 2.2 percentage points for men (April 2020 - March 2021)^[111]. The much larger gap for women than men may be partly attributed to cultural factors for particular ethnic groups.
• Analysis by ethnicity shows a TEA^[112] rate of almost 13% amongst Scotland's non-white population, which is higher than for the general population. For some, however, entrepreneurial activity may be partly undertaken as a result of discrimination in the labour market.
• Minority ethnic workers are more likely to work in some of the sectors most impacted by the pandemic^[113] and may be at greater risk of the 'scarring' effects of unemployment^[114]. Over a fifth of UK minority ethnic workers who were furloughed during the first lockdown in 2020 were no longer working by September 2020, more than double the overall rate^[115].
• The employment of minority ethnic people was disproportionately impacted by previous economic recessions, with profound implications for living standards and overall income and wealth equality^[116].

Stakeholder feedback

Stakeholders highlighted that there is a lack of representation of ethnic minorities in policy-making processes and that black and minority ethnic business owners, whilst very seldom included, have a substantial footprint across Scotland. They emphasised that diversity needs to be harnessed across Scotland's business community and that diversity must be valued in order to drive innovation and deliver revenue growth. Stakeholders also emphasised that barriers to employment for ethnic minority groups in Scotland must be considered and addressed.

Examples of NSET Programmes of Actions and Projects that will advance equality:

Entrepreneurial People and Culture

Project 1: Embed first rate entrepreneurial learning across the education and skills systems. For example, to build a new partnership between business and our education system, offering every school, college and university a network of relationships with high quality start-ups and entrepreneurs providing inspirational role models and mentors who can show young people what can be achieved and develop a culture that celebrates entrepreneurship – with an initial focus on schools in areas of multiple deprivation; and to adapt and review Scotland's apprenticeship system so that it is available for start-ups and early scale-ups to use, focussing in particular on providing opportunities for women and other under-represented groups and on specific skills, such as digital.

Project 2: Create a world class entrepreneurial infrastructure of institutions and programmes providing a high intensity pathway for high growth companies. For example, to set targets and focus on providing access to support programmes from amongst the most under-represented groups, particularly women, those on low incomes and those without qualifications at further or higher education. This would include the offer of financial support for those who are unable to afford time out from a full-time job or caring responsibilities to develop ideas. An early priority will be action to scope and deliver our new Women's Business Centre.

Project 4: Build an entrepreneurial mindset in every sector of our economy. For example, to pro-actively promote business start-up opportunities to those at risk of redundancy through the PACE programme.

Productive Businesses and Regions

Project 8: Improve connectivity infrastructure and digital adoption across the economy. For example, to create better transport connectivity with sustainable, smart and cleaner transport options; and to provide an efficient and resilient digital infrastructure. This includes continued investment in improved broadband, fibre and mobile coverage for residential and business premises.

Project 9: Upskill business and public sector leaders, pioneering new approaches to driving productivity improvements. For example, to launch the Centre for Workplace Transformation in 2022 to support experimentation in ways of working post-pandemic to deliver good jobs, recognising the importance of the way workplaces operate and best use of employees' skills to enhance business performance.

Skilled Workforce

Project 11: Adapt the education and skills system to make it more agile and responsive to our economic needs and ambitions. For example, to develop proposals for a national digital academy focused around the provision of SCQF level 6 qualifications including Highers, to open up access to a wide array of subjects to a wider array of learners, supporting post-school learners to access learning later in life and around other commitments; to deliver the forthcoming national strategy on adult learning that will ensure that community learning is more consistent and comprehensive.

Project 12: Support and incentivise people, and their employers, to invest in skills and training throughout their working lives. For example, to implement a more straightforward lifetime upskilling and retraining offer; and to target more skills investment and support to working age people in poverty or at risk of moving into poverty (particularly the six priority family types). Ensuring that access to training for more marginalised groups is made as easy as possible, we will work with learners and delivery partners to better understand the steps we must take to improve provision, including in areas such as training at times that suit people with caring responsibilities, with additional support needs or that fit around current jobs.

Project 13: Expand Scotland's available talent pool, at all skills levels, to give employers the skills pipeline they need to take advantage of opportunities. For example, to systemically address Scotland's labour market inactivity challenges by assessing trends within labour market inactive groups and understand what steps can be taken to bring more individuals into the labour market – including through the use of child-care and transport provision, part-time / flexible working, support for employees with disabilities, and business start-up and work from home opportunities.

A Fairer and More Equal Society

Project 14: Tackle poverty through fairer pay and conditions. For example, to apply Fair Work conditionality to grants, requiring payment of real Living Wage, and channels for effective workers' voice by summer 2022, and determine how these conditions can be applied to non-departmental public bodies, and to further extend Fair Work conditionality; to deliver on the commitment to require payment of the real Living Wage in Scottish Government contracts from October 2021; and to work with employers and trade unions in sectors where low pay and precarious work can be most prevalent (including leisure and hospitality, and early learning and childcare) to embed Fair Work practices and achieve higher standards of pay, better security of work, and greater union representation.

Project 15: Eradicate structural barriers to participating in the labour market. For example, to set out how we will support parents to increase their incomes from employment as part of cross-government action to deliver upon the ambitious targets set through the Child Poverty (Scotland) Act 2017; to simplify the employability system by implementing No One Left Behind; to ensure that people receive aligned and integrated offer of support to help them on their journey towards, into or progressing within the labour market and help them thrive and sustain employment for the long term - in this way we will ensure that individuals and families have access to the advice and services they need to thrive, including housing, health, affordable and flexible childcare and transport offers; and to take further steps to remove barriers to employment and career advancement for disabled people, women, those with care experience and people from minority ethnic groups that will be set out in the forthcoming refreshed 'A Fairer Scotland for Disabled People: Employment Action Plan' and the Gender Pay Gap Action plan, and a new ethnicity pay gap strategy and plan; and, building on the principles of the Young Person's Guarantee, to develop an all age guarantee of support for those most disadvantaged in the labour market, with an initial focus on parents from the six priority family groups at risk of child poverty.

7.7 Religion or Belief

What the evidence tells us:

• Relatively limited evidence is available for this group.
• In 2015-20^[117], relative poverty rates were considerably higher for Muslim adults (52%) compared to adults overall (18%).
• There is variation in employment rates by religion. Since 2004, the employment rate of Muslims in Scotland has been consistently lower than the employment rate for the population at large (58.1% vs 73.4% in 2020)^[118].
• Whilst estimates are less precise for other religions due to small sample sizes, the data does suggest that the employment outcomes for those who are Jewish, Sikh or Buddhist in Scotland lag behind the overall population^[119].

Examples of NSET Programmes of Actions and Projects that will advance equality:

Productive Businesses and Regions

Project 9: Upskill business and public sector leaders, pioneering new approaches to driving productivity improvements. For example, to launch the Centre for Workplace Transformation in 2022 to support experimentation in ways of working post-pandemic to deliver good jobs, recognising the importance of the way workplaces operate and best use of employees' skills to enhance business performance.

Skilled Workforce

Project 12: Support and incentivise people, and their employers, to invest in skills and training throughout their working lives. For example, to implement a more straightforward lifetime upskilling and retraining offer; and to target more skills investment and support to working age people in poverty or at risk of moving into poverty (particularly the six priority family types).

Project 13: Expand Scotland's available talent pool, at all skills levels, to give employers the skills pipeline they need to take advantage of opportunities. For example, to systemically address Scotland's labour market inactivity challenges by assessing trends within labour market inactive groups and understand what steps can be taken to bring more individuals into the labour market – including through the use of child-care and transport provision, part-time / flexible working, support for employees with disabilities, and business start-up and work from home opportunities.

A Fairer and More Equal Society

Project 14: Tackle poverty through fairer pay and conditions. For example, to apply Fair Work conditionality to grants, requiring payment of real Living Wage, and channels for effective workers' voice by summer 2022, and to further extend Fair Work conditionality; to deliver on the commitment to require payment of the real Living Wage in Scottish Government contracts from October 2021; and to work with employers and trade unions in sectors where low pay and precarious work can be most prevalent to embed Fair Work practices and achieve higher standards of pay, better security of work, and greater union representation.

Project 15: Eradicate structural barriers to participating in the labour market. For example, to simplify the employability system by implementing No One Left Behind; to ensure that people receive aligned and integrated offer of support to help them on their journey towards, into or progressing within the labour market; and to take further steps to remove barriers to employment and career advancement for women and people from minority ethnic groups that will be set out in the forthcoming refreshed Gender Pay Gap Action plan and a new ethnicity pay gap strategy and plan; and, building on the principles of the Young Person's Guarantee, to develop an all age guarantee of support for those most disadvantaged in the labour market.

7.8 Sex

What the evidence tells us:

• Whilst substantial progress has been made over the past 20 years in Scotland in reducing both the employment rate gap and pay gap between men and women^[120], outcomes for women still lag behind men.
• Women experience a range of barriers in the labour market that lead them to be paid less on average than men, drive aspects of the gender pay gap and contribute to the existence of (child) poverty^[121]. These relate to the type of job they are more likely to do (job selection), how much these jobs pay (job valuation) and whether they can move into higher-paid jobs (job progression)^[122]. Age also presents a barrier to women's employment – for example, women transitioning through the menopause while in work can require additional support^[123].
• Women (and particularly ethnic minority women)^[124] are more likely to be in insecure work^[125] and are overrepresented in sectors referred to as 5 C's of cashiering (retail), care, catering, cleaning and clerical. These sectors have historically low pay, low progression and low status but can often provide more flexibility to allow women to undertake caring responsibilities^[126].
• While the gender gaps in participation in the paid labour market has narrowed over time, women are still less likely to participate, and when they do participate, it is more likely to be on a part-time basis^[127] and at lower management levels^[128]. The reasons for this include, but are not limited to, education (and expectations of traditionally male and female subjects), women's ability to take jobs and their limited career options, and availability of suitable jobs with part-time and flexible working only available in certain occupations or sectors^[129].
• Women tend to do jobs that are low‐paid compared to those jobs undertaken by men. Gender segregation exists in many sectors in Scotland^[130], and the undervaluation of 'women's work' such as care, cleaning and retail is a key cause of women's low pay^[131]. Women also tend to be less likely than men to reach senior positions due to factors such as childcare responsibilities and division of resources and work at home.
• Women with disabilities, minority ethnic women, and lone parents (the vast majority of whom are young women), are at an even higher risk of poverty, disruption to employment chances and good labour market outcomes. The Analytical Annex^[132] to the 'Gender Pay Gap Action Plan' and the 'Gender Pay Action Plan'^[133] published by the Scottish Government sets out the drivers for gender disparities in the labour market in more detail.
• The Gender Pay Gap^[134] for full-time employees in Scotland has decreased significantly from over 18% in 2000 to 3.6% in 2021, however earnings from employment between men and women continue to vary with women earning less on average than men^[135].
• Between April 2011-March 2012 and April 2014-March 2015, the employment rate had increased at a faster rate for women compared with men in Scotland. However, since then, the rate of change had been similar for women and men up until April 2019-March 2020, after which both have decreased during the pandemic. In April 2020-March 2021, the employment rate for women was estimated at 70.5% (down from 71.4% in the previous year) and for men 75.2% (down from 77.7% in the previous year)^[136].
• Despite an increasing share of self-employment, women are still less likely to be self-employed than men^[137]. In 2020, only 17% of SMEs in Scotland with employees and 20% of sole traders were women-led^[138]. In terms of start-ups, as measured by the TEA rate, female entrepreneurship in Scotland has risen over time but remains lower than that amongst males^[139].
• As a result of COVID-19, women are expected to face larger long-term negative labour market outcomes due to their over-representation in part-time and insecure work^[140]. Women were around three times more likely to work in a sector shut down during the pandemic than men, with single mothers with low qualifications being particularly overrepresented in these sectors^[141]. The pandemic has emphasised the need to address the issue of women's low incomes from social security and employment^[142].
• Over the course of the pandemic, women's unpaid housework, childcare, and unpaid care increased^[143]. Women may also find it more difficult to secure alternative employment and income streams following lay-off^[144].

Stakeholder feedback

Stakeholders highlighted a range of issues including, but not limited to, the following:

• Need for integrating gender perspectives and women's needs, disadvantages and inequalities into response measures and wider economic policymaking;
• Need to improve the understanding of inequality issues in the system with considerations on child-care and care economy more generally as critical to achieving women's equality;
• Need to understand the links between child poverty and women's poverty;
• NSET should build on Scottish Government commitments on the gender pay gap;
• Root causes of women's underrepresentation in technology and STEM sectors should be addressed;
• Women's entrepreneurship base should be developed and better supported;
• Investment and growth should be targeted in sectors where women's work is concentrated;
• Suggestions for enhancing the quality of infrastructure that supports women to progress within the labour market including investing in structured, affordable and flexible childcare provision and social care; tackling occupational segregation through the development of gender-sensitive (re)training and development programmes; and
• Need for expanding and funding peer-to-peer support networks and increased financial support, training and coaching for female entrepreneurs; and easier access to government contracts for women-led SMEs.

Examples of NSET Programmes of Actions and Projects that will advance equality:

Entrepreneurial People and Culture

Project 1: Embed first rate entrepreneurial learning across the education and skills systems. For example, to adapt and review Scotland's apprenticeship system so that it is available for start-ups and early scale-ups to use, focussing in particular on providing opportunities for women and other under-represented groups and on specific skills, such as digital.

Project 2: Create a world class entrepreneurial infrastructure of institutions and programmes providing a high intensity pathway for high growth companies. For example, to set targets and focus on providing access to support programmes from amongst the most under-represented groups, particularly women, those on low incomes and those without qualifications at further or higher education. This would include the offer of financial support for those who are unable to afford time out from a full-time job or caring responsibilities to develop ideas. An early priority will be action to scope and deliver our new Women's Business Centre.

Project 4: Build an entrepreneurial mindset in every sector of our economy. For example, to pro-actively promote business start-up opportunities to those at risk of redundancy through the PACE programme.

Productive Businesses and Regions

Project 8: Improve connectivity infrastructure and digital adoption across the economy. For example, to create better transport connectivity with sustainable, smart and cleaner transport options; and to provide an efficient and resilient digital infrastructure. This includes continued investment in improved broadband, fibre and mobile coverage for residential and business premises.

Project 9: Upskill business and public sector leaders, pioneering new approaches to driving productivity improvements. For example, to launch the Centre for Workplace Transformation in 2022 to support experimentation in ways of working post-pandemic to deliver good jobs, recognising the importance of the way workplaces operate and best use of employees' skills to enhance business performance.

Skilled Workforce

Project 11: Adapt the education and skills system to make it more agile and responsive to our economic needs and ambitions. For example, to develop proposals for a national digital academy focused around the provision of SCQF level 6 qualifications including Highers, to open up access to a wide array of subjects to a wider array of learners, supporting post-school learners to access learning later in life and around other commitments; and to deliver the forthcoming national strategy on adult learning that will ensure that community learning is more consistent and comprehensive.

Project 12: Support and incentivise people, and their employers, to invest in skills and training throughout their working lives. For example, to implement a more straightforward lifetime upskilling and retraining offer; and to target more skills investment and support to working age people in poverty or at risk of moving into poverty (particularly the six priority family types^[145]). Ensuring that access to training for more marginalised groups is made as easy as possible, we will work with learners and delivery partners to better understand the steps we must take to improve provision, including in areas such as training at times that suit people with caring responsibilities, with additional support needs or that fit around current jobs.

Project 13: Expand Scotland's available talent pool, at all skills levels, to give employers the skills pipeline they need to take advantage of opportunities. For example, to systemically address Scotland's labour market inactivity challenges by assessing trends within labour market inactive groups and understand what steps can be taken to bring more individuals into the labour market – including through the use of child-care and transport provision, part-time / flexible working, support for employees with disabilities, and business start-up and work from home opportunities.

A Fairer and More Equal Society

Project 14: Tackle poverty through fairer pay and conditions. For example, to apply Fair Work conditionality to grants, requiring payment of real Living Wage, and channels for effective workers' voice by summer 2022, and determine how these conditions can be applied to non-departmental public bodies, and to further extend Fair Work conditionality; to deliver on the commitment to require payment of the real Living Wage in Scottish Government contracts from October 2021; and to work with employers and trade unions in sectors where low pay and precarious work can be most prevalent (including leisure and hospitality, and early learning and childcare) to promote and embed Fair Work practices and achieve higher standards of pay, better security of work, and greater union representation.

Project 15: Eradicate structural barriers to participating in the labour market. For example, to set out how we will support parents to increase their incomes from employment as part of cross-government action to deliver upon the ambitious targets set through the Child Poverty (Scotland) Act 2017; to simplify the employability system by implementing No One Left Behind; to ensure that people receive aligned and integrated offer of support to help them on their journey towards, into or progressing within the labour market and help them thrive and sustain employment for the long term - in this way we will ensure that individuals and families have access to the advice and services they need to thrive, including housing, health, affordable and flexible childcare and transport offers; to take further steps to remove barriers to employment and career advancement for women that will be set out in the forthcoming Gender Pay Gap Action plan; and, building on the principles of the Young Person's Guarantee, to develop an all age guarantee of support for those most disadvantaged in the labour market, with an initial focus on parents from the six priority family groups at risk of child poverty.

7.9 Sexual Orientation

What the evidence tells us:

• Whilst attitudes towards lesbian, gay and bisexual people have become more positive over the past decade in Scotland, they continue to face a range of inequalities and disadvantage across a number of areas and settings including employment, healthcare and education.
• Compared to heterosexual adults, lesbian, gay, bisexual or other adults were more likely to be younger, live in deprived areas, report bad general health, be unemployed and have a degree^[146].
• Despite studies showing equal or better pay for LGB people, they continue to experience discrimination, harassment and abuse in the workplace and in education^[147]. LGB employees are more than twice as likely to experience bullying at work than heterosexual employees, but many do not report this^[148].
• Four in ten LGB+ employees have experienced a form of workplace conflict in the past year, a rate significantly higher than for heterosexual workers^[149]. When conflicts, such as undermining, humiliation, shouting or verbal abuse occurred, the issue had only been partially resolved or not resolved at all.
• LGB+ employees report poorer working relationships and job satisfaction compared to their heterosexual colleagues, a lack of psychological safety, and they were more likely to report that work has a negative impact on their health^[150]. More subtle discrimination, such as derogatory jokes, misgendering and stereotyping also occur^[151].

Examples of NSET Programmes of Actions and Projects will advance equality:

Entrepreneurial People and Culture

Project 1: Embed first rate entrepreneurial learning across the education and skills systems. For example, building a new partnership between business and our education system, offering every school, college and university a network of relationships with high quality start-ups and entrepreneurs providing inspirational role models and mentors who can show young people what can be achieved and develop a culture that celebrates entrepreneurship – with an initial focus on schools in areas of multiple deprivation.

Skilled Workforce

Project 12: Support and incentivise people, and their employers, to invest in skills and training throughout their working lives. For example, to ensure that access to training for more marginalised groups is made as easy as possible, we will work with learners and delivery partners to better understand the steps we must take to improve provision.

Fairer and More Equal Society

Project 14: Tackle poverty through fairer pay and conditions. For example, to apply Fair Work conditionality to grants, requiring payment of real Living Wage, and channels for effective workers' voice by summer 2022; and to further extend Fair Work conditionality.

Project 15: Eradicate structural barriers to participating in the labour market. For example, building on the principles of the Young Person's Guarantee, to develop an all age guarantee of support for those most disadvantaged in the labour market; and to deliver an aligned and integrated offer of support for those seeking to move towards, into or progressing within the labour market, ensuring access to the advice and services including housing and health.