Scotland's National Strategy for Economic Transformation Programme 4: Skilled Workforce Equality Impact Assessment (Record and Results)

Equality Impact Assessment - Results

Title of Policy

Scotland's National Strategy for Economic Transformation - Programme 4: Skilled Workforce

Summary of aims and desired outcomes of Policy: The aim of the Skilled Workforce Programme is to ensure that our people have the skills they need at every stage of life to have rewarding careers that meet the demands of an ever changing economy and society.

The outcomes we are seeking to achieve are:

• an agile and responsive education and skills system that meets the needs of individuals and employers;
• a sustainable and skilled working population; and
• an increase in Scotland's talent pool.

Directorate: Fair Work, Employability and Skills Directorate

Executive summary

The Public Sector Equality Duty requires the Scottish Government to pay due regard to the need to meet its obligations under the Equality Act 2010 by assessing the impact of applying a proposed new or revised policy or practice upon equality.

Therefore, the Scottish Government has undertaken an Equality Impact Assessment (EQIA) as part of the process to develop the Skilled Workforce Programme within the National Strategy for Economic Transformation.

In developing this programme the Scottish Government is mindful of the three needs of the Public Sector Equality Duty (PSED) - eliminate unlawful discrimination, harassment and victimisation, advance equality of opportunity between people who share a protected characteristic and those who do not, and foster good relations between people who share a protected characteristic and those who do not. Where any negative impacts have been identified, we have sought to mitigate/eliminate these. We are also mindful that the equality duty is not just about negating or mitigating negative impacts, as we also have a positive duty to promote equality.

The Scottish Government aims to support the delivery of a fairer Scotland through addressing existing social and economic inequalities and preventing those who are most vulnerable from being further disadvantaged by facilitating and funding effective transitions into the labour market. Accessible skills provision which is relevant to the needs of the labour market now and in the future is key to the success of this aim.

Scotland's Labour Market plays a vital role in helping to create a wellbeing economy that thrives across economic, social and environmental dimensions. Published in spring 2022, the NSET sets out our vision for an economy that is more productive and suffers from fewer structural inequalities.

The Skilled Workforce Programme has the potential to positively impact on increasing equality across the labour market. For example, the breadth of the programme, covering the education and skills system, provides an opportunity to address challenges that may stem from early years and continue into education and work. Additionally, the focus on reform provides the opportunity to address systemic inequalities.

The following section highlights some of the key objectives we are seeking to achieve across each of the three projects within the programme.

Project 11 seeks to adapt the education and skills system so that it is more agile and responsive to our economic needs and ambitions. The commitment to deliver the National Strategy on Adult Learning will ensure that community learning is more consistent and comprehensive. The EQIA has been produced for the Strategy^[23].

A lifelong education, research and skills ecosystem that delivers for all people is critical to the future success of society and the economy. This is vital to ensure that everyone has the right skills, knowledge, values and attitudes to achieve their potential and to lead fulfilling lives, contributing to the wellbeing of their communities and the planet. As well as being central to the success of our economy, our education and skills ecosystem also plays a role in addressing key challenges facing our society such as poverty and climate change. We must ensure its purpose and principles are aligned to tackling these challenges and support us in making the right choices.

Project 11 also includes actions to implement the next phase of the Green Jobs Workforce Academy and to 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. This provides an opportunity to contribute to a Just Transition and to help disadvantaged groups enter into and progress in good, green jobs.

Project 12 is focused on supporting and incentivising people, and their employers, to invest in skills and training throughout their working lives. We have committed to developing and implementing a lifetime upskilling and retraining offer that is more straightforward to access for people and business. Crucially, the lifetime skills offer should target more skills investment and support to working age people living in or at risk of moving into poverty. The development of the lifetime skills offer will include working 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. This could include increasing the provision of training at times that suit people with caring responsibilities, with additional support needs or that fit around current jobs.

Scotland's population size and composition has a clear impact on Scotland's economy. We need to grow our working age population to ensure we have people of working age to deliver our public services and work across our economy while also providing the tax base. The potential for inward migration to counter natural population decline is impacted by the UK's exit from the European Union (Brexit). Employer demand for workers has increased while the supply of permanent and temporary workers has fallen, bringing new challenges for industries and employers. Businesses across Scotland, acutely in some rural areas, are experiencing a shortage of workers with commonly cited difficulties including a lack of both applicants and qualified candidates. Project 13 therefore recognises that Scotland is facing significant demographic challenges and that more needs to be done to attract and retain working age people and their families from outside Scotland.

Headline Findings and Learning

Background

The evidence for this EQIA was taken from a range of sources including data published by the National Records of Scotland and the Annual Population Survey, Additionally, the NSET's Evidence Paper and Equalities Position Statement were used as reference, however, data has in some cases been updated to reflect changes since the documents were published. Internal and external stakeholders have been and will continue to be consulted on the equality impacts of our programme.

The Scope of the EQIA

The EQIA has been informed by analysis of existing evidence and data (both qualitative and quantitative) in order to draw out the potential impacts of the policy for individuals and equality groups. It does not exclude any protected characteristics.

While this EQIA is for the overarching Skilled Workforce Programme, it is intended that much more detailed assessments are undertaken for projects and/ or actions given their distinct nature and potentially different impacts. At the time of publication, EQIAs have already been undertaken for the Adult Learning Strategy and for the Green Jobs Workforce Academy. The project/action EQIAs will build on the evidence gathered for this EQIA. Additionally, we will work with businesses and skills providers to capture equalities information to better understand the diversity of the workforce.

Key Findings

This section considers specific post-school skills issues for those groups protected under the Equality Act 2010. With the exception of the Adult Learning Strategy and the Green Jobs Workforce Academy, the policies and therefore EQIAs for all the Skilled Workforce projects are still to be developed. As part of this work, we will consider existing evidence and work with stakeholders to ensure the evidence we have is taken into account and that where required and feasible, new evidence is gathered.

Age

Unemployed young people can access a wide range of employment and training support through the range of interventions that form the Young Person's Guarantee, which has a particular focus on those not in education employment or training.^[24]

Young people aged 16-24 make up the largest proportion of higher education undergraduates (78%) and further education enrolments (58.9%).^[25]

Older workers are less likely to enter non-work-related training or education.^[26] Ageism, exclusion and lack of willingness to recognise the skills and experience of the older workforce also present employment barriers for this group.^[27]

Impact and opportunity through this policy to promote equality

Although in very early stages of policy development, this programme may particularly affect people of different ages. The evidence highlights different levels of skills among younger and older workers and that they face different barriers in the labour market in relation to the acquisition of skills. If developed in a way which takes account of this evidence, there is an opportunity to have a positive impact on equality and eliminating discrimination, e.g. targeting additional upskilling opportunities at older workers. Increasing the age range of workforces to ensure young people and older workers can equally participate in the labour market could enable good relations between these groups.

Disability

The proportion of Equality Act Disabled people aged 16-64 with low or no qualifications (17.4%) is over twice as high as those who are not disabled (6.4%).^[28]

They are less likely than non-disabled people to have qualifications at degree level or above. Even with a degree or higher qualification, people with disabilities are still less likely to be employed than non-disabled people without one.^[29]

The proportion of Equality Act disabled people in employment who received job-relating training in the past 3 months (24.4%) is higher than the proportion for not Equality Act disabled people (23.3%).^[30]

The proportion of Equality Act disabled people in employment aged 16 to 64 who received job-relating training in the past 3 months (24.4%) is higher than the proportion for not Equality Act disabled people (23.3%). The proportion in employment who received job-related training for both disabled and non-disabled people have seen a decrease since 2019, although by slightly larger decrease for disabled people (-0.4 percentage points against -0.2 percentage points for non-disabled people.^[31]

Disabled people feel that often training is not accessible to them and that the adjustments they need to be able to undertake skills development are not available.

However, enrolments by disabled people for both further (26.6%) and higher education (12%) have increased in recent years.^[32]

Impact and opportunity through this policy to promote equality

Although in very early stages of policy development, this programme may particularly affect disabled people. The evidence highlights the inequality in the skills system and labour market faced by disabled people. With lower levels of skills and being at greater risk of poverty, policy developed under the Skilled Workforce programme projects can help advance equality of opportunity to increasing accessibility of training for disabled people. It may also have a positive effect in fostering good relations by increasing the number of disabled people able to access employment at a level appropriate to their skills.

Sex

Although more men report low or no qualifications and less work related training, we know women experience negative impacts of occupational segregation in the labour market which often reduces their earning capability and in the case of lone parents can see them at risk of or living in poverty. Women predominate in lower paid sectors such as care, cleaning and catering.^[33]

Close the Gap note the gendered impacts of the labour market and feel much more can be done within the skills system to help address these.^[34]

Impact and opportunity through this policy to promote equality

Although some gaps exist in intersectional data, robust evidence points to the need for action to address the inequality women face in the labour market and the Skilled Workforce programme can make a positive contribution to this. Although at early stages of development, the programme may positively affect women and help advance equality of opportunity by upskilling more women to enter work in more highly paid sectors, including in new opportunities arising as we transition to net zero. It may also have a positive effect in fostering good relations in the longer term by increasing the number of women in more male dominated and higher paid roles/sectors.

Race

In 2021 in Scotland the proportion with low or no qualifications is higher amongst the minority ethnic group aged 16-64 (11.7%) compared with the white group aged 16-64 (8.9%).^[35]

A higher proportion of minority ethnic people in employment aged 16-64 have received job-related training in the last 3 months (24.9%) compared with 23.4% of those who identify as white.^[36]

However, while minority ethnic school leavers tend to outperform other pupils, this doesn't translate into better work outcomes. They can face discrimination when applying for a new job or promotions, and women may face additional barriers in accessing and navigating quality employment. May be more likely to work irregular hours so accessing suitable childcare can be a challenge and tend to be paid less per hour, and are more likely to be underemployed.^[37] Internationally qualified workers are more likely to be underemployed.^[38]

Impact and opportunity through this policy to promote equality

Although at early stages of development, there is evidence that some minority ethnic people face discrimination in the labour market and have low levels of skills. The Skilled Workforce programme may advance equality of opportunity by offering specific upskilling support to meet their needs and enable them to enter more highly skilled employment. As with the other groups noted above, the existence of more diverse workforces can, in the longer term, have a positive effect in fostering good relations.

Other groups with Protected Characteristics

There is a lack of robust skills data for the remaining groups, with volumes often low and individuals choosing not to complete these elements of the equality data gathering process during their registration for training.

However, there is some quantitative evidence available which points in some cases to a need for positive change. For example we know trans students report experiencing harassment and discrimination at higher education institutions and for some this has a significant negative impact on their studies, future plans and skills.^[39]

As the equality impact assessments for these groups are developed, further evidence gathering will be required to identify how the policies and interventions being designed can address any barriers faced by these groups in fulfilling their skills potential.

Impact and opportunity through this policy to promote equality

The projects of the Skilled Workforce programme, if developed in line with evidence already available and gathered in the course of policy development, should have a positive impact where that evidence points to discrimination, inequality of opportunity and a need to foster good relations. Effectively targeted skills programmes tailored to individuals', communities' and employers' needs can improve outcomes for these groups and work to foster good relations by ensuring people have the skills they need to fulfil their potential.

Intersectionality

There is insufficient data across the range of intersectionality to offer a clear picture of skills for groups with intersectional characteristics. However, we do note that some groups do experience additional challenges, for example disabled women from a ME background.^[40]

As the equality impact assessments for these groups are developed, further evidence gathering will be required to identify how the policies and interventions being designed can address any barriers faced by these groups in fulfilling their skills potential.

Impact and opportunity through this policy to promote equality

Despite the lack of robust intersectional data across some equality groups, we are clear that the Skilled Workforce programme projects, if developed in line with evidence already available and gathered in the course of policy development, should have a positive impact where that evidence points to discrimination, inequality of opportunity and a need for more good relations. Effectively targeted skills programmes tailored to individuals', communities' and employers' needs can improve outcomes for these groups and work to foster good relations by ensuring people have the skills they need to fulfil their potential.

However, the evidence gathering work to date to a lack of robust data and addressing this is a clear priority to enable effective policy development and implementation.

Relevance of Skilled Workforce projects to the groups listed in key findings above

All three Skilled Workforce projects are relevant to improving outcomes for the groups above facing barriers to ensuring they have the skills needed now and in the future to succeed in Scotland's labour market. These are:-

• Project 11: Adapt the education and skills system so that it is more agile and responsive to our economic needs and ambitions;
• Project 12: Support and incentivise people, and their employers, to invest in skills and training throughout their working lives; and
• Project 13: Expanding Scotland's available talent pool at all levels, to give employers the skills pipeline they need to take advantage of opportunities.

Recommendations and Conclusion

• The Programme EQIAs will be kept under review and periodically updated throughout the duration of the NSET Strategy, with new data and evidence analysed as we improve data collection.
• As policy interventions are developed to support the aims of the Programme, these policies will require their own EQIAs to ensure that the specific barriers for each protected characteristic are fully considered.
• The Skilled Workforce Programme Board Secretariat will establish an equalities reference group to provide support, expertise and challenge on our approach to equalities.
• The Skilled Workforce Programme Board will review and scrutinise the Programme's impact on equalities.
• That the Programme considers the requirement for Fairer Scotland Duty, Island Communities Impact Assessment and Business Regulatory Impact Assessments.