Scotland's National Strategy for Economic Transformation (NSET) – Programme 2: New Market Opportunities Equality Impact Assessment (Record and Results)

Equality Impact Assessment – Results

Title of Policy:

Scotland's National Strategy for Economic Transformation (NSET) – Programme 2: New Market Opportunities

Summary of aims and desired outcomes of policy: The New Market Opportunities Programme aims to strengthen Scotland's position in new markets and industries, generating new, well-paid jobs from a just transition to net zero.

Directorate: Directorate for International Trade and Investment

Executive Summary

The Equality Act 2010 places a duty (known as the Public Sector Equality Duty, or PSED) on public authorities to have due regard to the need to eliminate discrimination, advance equality of opportunity and promote good relations between people who share a Protected Characteristic and those who do not. The Equality Act 2010 (Specific Duties) (Scotland) Regulations 2012 (Regulation 5) require public authorities to assess and review policies and practices against the three needs of the PSED.

Therefore, the Scottish Government has undertaken a series of Equality Impact Assessments (EQIAs) as part of the routine process of developing policies that make up the New Market Opportunities Programme within NSET – See Annex A.

These EQIAs aim consider how a policy may impact, on people with Protected Characteristics in different ways. Equality legislation covers the Protected Characteristics of: age, disability, gender reassignment, sex, pregnancy and maternity, marriage and civil partnership, race, religion or belief, and sexual orientation.

The Scottish Government remains committed to a wellbeing economy that thrives across economic, social and environmental dimensions. The New Market Opportunities Programme aims to strengthen Scotland's position in new markets and industries, generating new, well-paid jobs from a just transition to net zero.

Background

As the global economy accelerates towards a net zero future and artificial intelligence, genomics and other scientific advances change the way we live, new markets will be created and new industries will emerge. Scotland has the potential to build world-leading industries in areas where our human and natural capital and technology and research capabilities provide the basis of global competitive advantage.

EQIA is about testing our policies to ensure they work for everyone, in a way that is founded in fairness and dignity, and which ensures that equality is safeguarded. By working with stakeholders and placing these values at the heart of our response we will ensure that our policies meet the needs of the PSED. The needs are to:

• Eliminate discrimination, harassment and victimisation;
• Advance equality of opportunity; and
• Foster good relations.

Scope of the New Market Opportunities Programme level EQIA

The projects within the New Market Opportunities Programme include both new and existing policies and commitments. This Programme level EQIA reflects our current position, and additional action we will take to:

• regularly review existing EQIAs in light of any new data or evidence; and
• undertake EQIAs at an appropriate point in time when a proposed new or revised policy occurs during the 10 year lifecycle of this strategy.

This New Markets Programme level EQIA has been informed by detailed analysis of existing evidence and data in order to draw out the potential impacts of the policy for the Protected Characteristics as set out in the Equality Act.

Key Findings

New Market Opportunities provides both the opportunity to build world leading industries, and provides many opportunities for new, good, green and high value jobs and careers for people across all of the Protected Characteristic groups both now, and for future generations.

New Market Opportunities – positive impacts

Emerging industries, increased automation and digital technologies as a result of industrial transformation and a just transition to net zero, provides a strong opportunity:

• to remove many of the physical barriers to work that have been in place for past generations of women and disabled people, through the introduction of equipment and processes that are universally designed, tested and accessible for all;
• for employers to attract and recruit a diverse and talented workforce of people from all areas of Scotland, and with intersectional Protected Characteristics (e.g. LGBT+, disabled, woman living in a rural area), through the opportunities of new careers in new industries;
• introduce more flexible working practices in sectors where flexible working may have in the past proven impractical, potentially allowing older people to remain in the workforce longer and share their skills and knowledge with young workers;
• opportunities to close existing pay gaps through the recruitment, or reskilling of people with Protected Characteristics to undertake new jobs, transformed jobs or substituted jobs; and
• wider societal benefits for all people with Protected Characteristics throughout Scotland as the result of emerging new businesses helping to reduce poverty, in particular child poverty, through creating new jobs in industry and the wider supply chain.

New Market Opportunities – potential negative impacts

It is anticipated that, as a result of new technology and the emergence of new industries, traditional roles and jobs in current industry may become obsolete. However, the skills associated with existing jobs will not become obsolete. These will serve as the foundation for the skill set required in new jobs and the basis for retraining and skills upgrading measures. The use of new technologies, new manufacturing processes and new modes of work for the green economy will lead to an increase in the demand for skills.

It is important to note that the ambitious industrial transformation set out in the New Market Opportunities Programme has the potential to result in:

• redundancy as a result of current products, processes or technologies disappearing, or where automation replaces a person;
• job substitution, such as where high carbon manufacturing jobs are replaced with jobs recycling or remanufacturing products or creating the technologies required for this; and
• job transformation and/or redefinition, where job roles are aligned to green principles.

Protected Characteristics

All age groups

As Fair Work is at the heart of NSET, this programme is anticipated to have a positive impact on people of all ages as a result of the opportunities that will be provided for for all age groups for new, good, green, high value jobs in emerging industries. This will help advance equality of opportunity by providing the opportunity:

• for all age groups to learn new skills, upskill and reskill;
• to close the gender pay gap that widens with age;
• for young people to secure desirable careers in green industries; and
• create more inclusive and diverse work places through the introduction/adoption of automation and flexible work processes that could potentially allow older people to remain in the workplace for longer, or wind down to retirement.

This programme will promote good relations between different age groups through

intergenerational sharing of knowledge. In particular young people will be able to share experience and knowledge with older people who perhaps have less experience with IT and technology and older people will be able to hand down practical workplace skills and lessons learned through years of experience.

Whilst this programme promotes good relations between different age groups, it is recognised that older people may experience difficulties in adapting to any changes to their existing jobs as result of new and emerging technologies and industries.

Disability / long term health condition

As Fair Work is at the heart of NSET, this programme is anticipated to have a positive impact on disabled people as a result of the opportunities that will be provided by the introduction of new technology and work processes in emerging industries. This will help advance equality of opportunity by providing the opportunity:

• for disabled people to learn new skills, upskill and reskill,
• to close the gender pay gap that exists between disabled women and male counterparts,
• create more inclusive and diverse work places through removing some of the historical physical barriers to employment (such as tools, machinery and equipment designed for use by the average man), through the increased adoption of automation and flexible work processes in emerging industries; and
• to create more flexible workplaces in emerging industries that could potentially allow disabled people to have healthier, productive, working lives.

This programme will promote good relations between disabled and non-disabled people through providing the opportunities for non-disabled and disabled people to work collaboratively in the planning and designing of emerging industries, work practices and workplaces. This will ensure that challenges faced by disabled people are considered at the earliest opportunity and remove potential barriers to work.

The priority sectors identified in Scotland: A Trading Nation^[47] are less likely to have employees with a disability than Scotland overall (10.5% v 12.3%). The priority sectors with the lowest proportion are Energy (7.0%) and Food and Drink (10.8%).

Whilst the New Market Opportunities Programme promotes good relations among disabled and non-disabled people, it is recognised that disabled people, who may be in lower skilled jobs may be disproportionately affected by any phasing out of these low skilled jobs due to the introduction of new technology and industries.

Gender Reassignment

In 2018, 1 in 5 (18%) of people looking for work said they were discriminated against because of their sexual orientation/gender whilst trying to get a job. 0.98% have experienced transphobia, and 5.39% have experienced gender identity discrimination at work, college or university when trying to progress a career in: science, technology, engineering, and maths.

As Fair Work is at the heart of NSET, this programme is anticipated to have a positive impact on this group as a result of the opportunities that will be provided by the introduction of new technology and work processes in emerging industries. This will help advance equality of opportunity by providing the opportunity:

• for this group to learn new skills, upskill and reskill;
• to close the gender pay gap that exists between genders; and
• create more inclusive and diverse work places through removing some of the historical physical barriers to employment for different genders (such as tools, machinery and equipment designed for use by the average man), through the increased adoption of automation and flexible work processes in emerging industries.

This programme provides the opportunity to diversify the workforce and work processes. This will promote good relations through providing this group with opportunities for new, good, green, high value jobs in emerging industries, with equality of opportunity and parity of pay.

However, it is recognised that more information is required to determine how this group is impacted and how NSET the New Market Opportunities Programme can be used to break down barriers to a career in emerging industries.

Sex

Even where men and women have the same job, there may be different risks with different outcomes.

The composition of employment by industry differs for men and women. According to the Institute for Public Policy Research, men tend to work in goods-related industries (e.g. chemicals and electrical equipment) and agriculture, whereas women tend to work in services sectors (e.g. education, health and social care, and retail).

As Fair Work is at the heart of NSET, this programme is anticipated to have a positive impact on both men and women as a result of the opportunities that will be provided by the opportunities for new, good green, high value jobs in emerging industries and the introduction of new technology and work processes. This will help advance equality of opportunity by providing the opportunity:

• for this group to learn new skills, upskill and reskill;
• to close the gender pay gap between men and women, and which widens with age, and as a result of women having career breaks for caring responsibilities; and
• create more inclusive and diverse work places through removing some of the historical physical barriers to employment for women (such as tools, machinery and equipment designed for use by the average man), through the increased adoption of automation and flexible work processes in emerging industries.

Analysis showed that the priority sectors identified for specific focus in delivery of Scotland: A Trading Nation, have a lower proportion of female employees than Scotland overall (43.4% v 48.3%). These priority sectors include Engineering and Advanced Manufacturing and Energy (16.5% and 15.7% respectively). However the Scottish Government has a priority to address women's labour market inequality and to close those pay gaps. This is reflected in Scotland's labour market strategy which commits to 'continuing to tackle inequalities around pay gaps and occupational segregation in the labour market.'

The New Markets Opportunities Programme promotes good relations as it presents an opportunity to diversify the workforce and work processes. This will allow for more inclusive workplaces for all men and women group in the manufacturing sector, ensuring that all workers have equality of opportunity, improved workplace flexibility and, through helping to close the gender pay gap, equal pay.

Whilse this programme promotes good relations among men and women it is recognised that women, who may be in lower skilled jobs, may be disproportionately affected by any phasing out of these low skilled jobs due to the introduction new technology or industries.

Pregnancy and Maternity

As Fair Work is at the heart of NSET, this programme is anticipated to have a positive impact on women as a result of the opportunities that will be provided by the increased opportunities for flexibile working in emerging industries. This will help advance equality of opportunity by providing the opportunity:

• for this group to learn new skills, upskill or reskill on return from maternity or career breaks;
• to close the gender pay gap between men and women, and which widens with age and as a result of women having career breaks for caring responsibilities,
• create more inclusive and diverse work places through removing some of the historical physical barriers to employment for pregnant women (such as tools, machinery and equipment designed for use by the average man), through the increased adoption of automation in emerging industries.

The UK national percentage pay gap between men and women increases with age. This is exacerbated by the 'motherhood penalty' for women taking time off for maternity leave and caring for young children. To overcome this, targeted returner programmes are needed to provide women with support into a suitable level role.

In 2019, 6.9% of the 23.4% of women (13,100 women) who work in the manufacturing sector had children aged younger than 16 years. This low number, and the fact that 91.2% of workers in manufacturing work full time, would suggest that careers in traditional industry does not lend itself to flexible, part-time work, which women may need.

This programme promotes good relations, however, more information is needed about how emerging industries can incorporate more flexible working practices to assist this group to return to the workplace.

Marriage and Civil Partnership

Theoretically, married couples or couples in a Civil Partnership may work for the same manufacturing business, or work in comparable jobs in the sector, but receive unequal pay for the jobs which they carry out.

This programme provides the opportunity for couples to receive parity of pay for work of equal value.

Race

The majority (96%) of Scotland's population identify as white, with 4% identifying as from minority ethnic backgrounds. People from minority ethnic backgrounds are underrepresented in industries such as the Scottish manufacturing sector, with 1.9% of the workforce from minority ethnic backgrounds. The Annual Population Survey confirms that ethnic minorities make up a larger proportion of service industries, than manufacturing and agriculture. This demonstrates the imperative of encouraging and breaking down barriers for minority ethnic people to work in jobs created during the low carbon transition.

As Fair Work is at the heart of NSET, this programme is anticipated to have a positive impact on people from all ethnic minority communities and backgrounds as a result of the opportunities that will be provided by the increased opportunities for flexibile working in emerging industries across the whole of Scotland. This will help advance equality of opportunity by providing the opportunity:

• for this group to learn new skills, upskill or reskill;
• to close the race pay gap;
• create more inclusive and diverse work places through removing some of the historical physical barriers to employment for ethnic minority women or ethnic minority disabled people (such as tools, machinery and equipment designed for use by the average man), through the increased adoption of automation in emerging industries; and
• Provide more flexible working opportunities for ethnic minority people who may have caring responsibilities for family members.

The long term outcomes of project actions, such as the Low Carbon Manufacturing Fund, available to businesses in all regions, should increase the potential for businesses in low income regions to become a net generator of good, green jobs, and offering new local opportunities to create a sustainable and inclusive world of work for all people within this group.

Religion

The poverty rate amongst Muslims in Scotland (2017-20) was 52%. With 9.09% of women have experienced religious discrimination at work, college or university when trying to progress a career in: science, technology, engineering, and maths.

This programme is anticipated to have a positive impact on people from all religious backgrounds as a result of the opportunities that will be provided by the increased opportunities for flexibile working in emerging industries across the whole of Scotland.

The New Market Opportunities Programme promotes good relations among people from different religious and belief backgrounds through this programme providing everyone, regardless of religion, an equal opportunity to exploit the opportunties provided by new and emerging industries.

It is recognised that minority ethnic people, in particular Muslims, who may be in lower skilled jobs, may be disproportionately affected by any phasing out of these low skilled jobs due to the introduction of new technology and industries.

Sexual Orientation

Lesbian/Gay/Bisexual women feel less likely to report confidence when speaking about inequalities in the workplace and 4.41% have experienced homophobia at work, college or university when trying to progress a career in: science, technology, engineering, and maths. A third of LGBT+ people working in the technology sector believe there is a wage gap between them and heterosexual people.

This programme is anticipated to have a positive impact on this group result of the opportunities that will be provided by the increased opportunities for new, good, green, high value jobs in new and emerging industries across the whole of Scotland. This will help advance equality of opportunity by providing the opportunity:

• for this group to learn new skills, upskill or reskill;
• create more inclusive and diverse work places through removing some of the historical physical barriers to employment for women and disabled people in this group (such as tools, machinery and equipment designed for use by the average man), through the increased adoption of automation in emerging industries; and
• Provide more flexible working opportunities for people in this group.

More information is required to determine how this group is impacted. It is imperative that the Fair Work principles are embedded in all of this Programme to encourage private sector employers to actively seek and recruit diverse talented people.

Intersecting Protected Characteristics

Intersecting identities such as gender, age, ethnic identity and disability play an exacerbating role in pushing people with a combination of Protected Characteristics into informal, part time or segregated working arrangements. Paying attention to specific needs while providing opportunity for decent work can help counter marginalisation.

Through the various impacts on people with protected characteristics identified in this EQIA, it is anticipated that multiple barriers to working in new or emerging industries will be captured and mitigated.

Recommendations and Conclusions

It is worth noting that new evidence and data is continually being produced; this EQIA has been developed based on available evidence, and data at this time.

As NSET is a 10 year strategy, specific policy interventions are yet to be developed for a number of the actions within the New Market Opportunities Programme. However, as policy develops, EQIAs will be undertaken - and reviewed - to ensure that the specific barriers for each of the Protected Characteristics are fully considered.

Where an EQIA exists, these will be kept under regular review, as new data and evidence emerges to monitor the impact of this programme on people with Protected Characteristics.

This Programme level EQIA assesses the impacts of applying a proposed new and/or revised policy to meet the needs of the public sector equality duty, to:

• Eliminate discrimination, harassment and victimisation;
• Advance equality of opportunity; and
• Foster good relations.

As NSET's aim is to create a society that is thriving across economic, social and environmental dimensions, and which delivers prosperity for all Scotland's people and places, the New Markets Programme will affect everyone in Scotland to some extent.

The long-term opportunity presented by the New Markets Programme to diversify the workforce and work processes will allow for more inclusive workplaces for all across industry and new market opportunities. This will ensure that all workers have equality of opportunity, improved workplace flexibility and, through helping to close the gender pay gap, equal pay.