Scotland's National Strategy for Economic Transformation Programme 5: A Fairer and More Equal Society Equality Impact Assessment (Record and Results)

Key Findings

Age

Labour market data shows that the unemployment rate of 16-24 year olds is much higher than other age groups and that the COVID-19 pandemic has disproportionately impacted young people in our labour market. Young adults are also more likely to be in poverty than older adults, and are vulnerable to long-term employment 'scarring'. Additionally, children living in households with a young mother (<25) are much more likely to be in poverty than those living with a mother aged 25+.

Scotland has an ageing population, with people working into older ages. There is also considerable geographical variation in the age profile of the population. Long-term unemployment (12 months plus) is a particular challenge for older workers (50+), with that age group estimated to make up almost half of all long-term unemployed people in 2021. The number of unemployed people aged 50+ who were long-term unemployed increased over the latest year whereas it fell for other age groups.

The evidence tells us that the measures in NSET are expected to positively affect people in different age groups by effectively targeting employment support which will be designed and delivered to better meet the needs of unemployed people. It will not discriminate based on age and it will tackle the challenge by engaging all, including young people with opportunities suited to individual needs, within the local area.

The NSET measures may help advance equality of opportunity by removing barriers to obtain sustainable employment given to young people and older workers (50+) whom make up a larger share of long-term unemployment. Further, they may also have a positive effect in fostering good relations between people by supporting people of all ages into work, education and training and creating opportunities to integrate with colleagues of different ages.

Disabled People

It is estimated that around one fifth of Scotland's working age population is disabled, and the prevalence of disability increases with age. Despite some progress in recent years, Scotland has a persistent disability employment rate gap (the difference in the employment rates of disabled and non-disabled people) with the employment rate of disabled people (including young disabled people) consistently lower than the employment rate of non-disabled people. Disabled people also earn less on average that non-disabled people.

Prior to the COVID-19 pandemic, the disability employment gap (DEG) was narrowing – falling from 37.4 percentage points in 2016 to 32.6 percentage points in 2019. However, in 2020, the gap widened slightly increasing to 33.4 percentage points - suggesting that disabled people had been disproportionately impacted in the labour market as a result of COVID-19. Between 2020 and 2021, the gap returned to narrowing, reducing by 2.2 percentage points from 33.4 percentage points in 2020 to 31.2 percentage points in 2021.

The evidence tells us that the measures in NSET are expected to positively affect disabled people by working with delivery partners to better promote and communicate available employability support through their activity, targeting those with protected equality characteristics, including disabled people and by considering A Fairer Scotland for Disabled People: employment action plan.^[26]

They may help to advance equality of opportunity by supporting disabled people into work contributing to the narrowing of the disability employment gap and disability pay gap. They may also have a positive impact on fostering good relations between people, by increasing the number of disabled people who are successful in progressing in work. This should have a positive impact on the collective understanding of the challenges some disabled people face, as well as demonstrate their contribution to the workplace.

Race

Scotland has a persistent minority ethnic employment rate gap with the employment rate of Scotland's minority ethnic population consistently lower than the employment rate of the white population. Compared with the white population, minority ethnic groups are also more likely to work in accommodation and food services, be more likely to earn low income and less likely to have savings.

In 2021, the employment rate of the minority ethnic population was estimated to be 62.1% compared to 73.8% for the white population – a gap of 11.7 percentage points. There has been no sustained progress in reducing the ethnicity employment rate gap over recent years.

Employment outcomes are particularly poor for minority ethnic women with an employment rate of just 49.0% in 2021 compared to 76.9% for minority ethnic men.

The evidence tells us that the measures in NSET are expected to positively affect minority ethic population by not discriminating based on race. All referrals to employability programmes will consist of clients who meet the eligible criteria. The measures may help advance equality of opportunity by working with service delivery partners to promote Fair Work First, reducing the disparity in outcomes in terms of unemployment and long-term unemployment and may also have a positive impact on fostering good race relations between people supporting those from minority ethnic groups into places of work, helping to promote diverse workforces.

Sex

Women have worse employment outcomes in the labour market than men and are paid less on average. Women are also more likely than men to be economically inactive. However, men are more likely than women to be unemployed or long-term unemployed.

The employment rate of women has consistently been lower than the employment rate of men, but the gap in these rates has narrowed over time as female labour market participation has risen. In 2021, the employment rate of women was estimated to be 70.7% compared to a rate of 75.7% for men.

The Gender Pay Gap for full-time employees in Scotland has decreased significantly from over 18% in 2020 to 3.6% in 2021, however earnings from employment between men and women continue to vary with women earning less on average than men.

The evidence tells us that the NSET measures are expected to positively affect women by recognising that women are more likely to take on caring responsibilities of children/family and as such are more likely than men to face discrimination associated with this. The measures may help advance equality of opportunity by supporting both males and females into employment and could help contribute to the narrowing of the gender employment gap. Increasing the number of parents (especially mothers) in the workforce could promote better relations within the work environment and further advance equality of opportunity. It will also not encourage gender specific roles.

This equality impact analysis has shaped and informed the Scottish Government's policy development by:

• Feeding into the development of a Policy Statement for all future programmes allowing colleagues to structure and adapt the EQIA on an ongoing basis;
• Helping to address the negative impact benefit sanctions can have on vulnerable people in society. Scottish Ministers have agreed that all customers participating in Scotland's employability support should do so on a voluntary basis;
• Presenting an opportunity to design and deliver effective and targeted employment support services in Scotland that better meet the needs of unemployed people and businesses and services that reflect national and local labour markets and which helps to build on existing service delivery in Scotland; and
• Creating an opportunity to better align, not just mainstream, employability support, creating the opportunity to deliver more effective, targeted and joined up public services and seek broader progress and potential shared outcomes (and investment) in devolved services.