Scotland's People Annual Report: Results from 2013 Scottish Household Survey: Revised October 2015

5 Economic Activity

INTRODUCTION AND CONTEXT

The Scottish Government is committed to improving the economic situation and opportunity of people in Scotland, through sustainable economic growth^[54]. The Scottish Household Survey (SHS) gathers information about the current economic situation and the characteristics of individuals and households in different economic activity categories.

The information gathered in the SHS about the current economic situation of members of the household is reported by the respondent to the 'household' part of the interview and may not conform to official definitions of employment and unemployment. The SHS has questions on these topics only for selecting the data of particular groups, such as working adults^[55] or those who are permanently retired from work, for further analysis or for use as background variables when analysing other topics.

The official source of statistics on employment, unemployment and economic activity is the Labour Force Survey for Scotland and the Annual Population Survey at a local authority level. Results from both surveys are available from the Scottish Government website^[56].

In this chapter, the current economic situation of adult men and women is considered. This is followed by an examination of the economic situation of working households, starting with the number of working adults within households. In households with adults of working age^[57], the current economic situation is further analysed by gender and whether an adult has a long standing illness, health problem or disability. Finally, this chapter explores the current economic situation of women of working age, specifically investigating the impact of whether there are children present in the household.

Main Findings

• One in five (20 per cent) adults had no qualifications, with those aged 75 and over least likely to have qualifications (48 per cent).
• In 2013, 49 per cent of working age adults in households earning over £40,000 had degree level or professional qualifications, while only four per cent had no qualifications.
• A higher proportion of men (58 per cent) than women (49 per cent) were currently in work. Women were more likely to be in part-time employment than men (17 compared with 4 per cent). In contrast, self-employment was more common among men than women (8 and 4 per cent, respectively).
• There was a relationship between the highest level of qualification and full time employment, with those who have attained degree level or professional qualifications having the highest proportion in full-time employment (60 per cent). In contrast, 29 per cent with no qualifications were in full time employment.

HIGHEST QUALIFICATION LEVEL

Variation in the highest level of qualification held by adults can be seen across age groups. Table 5.1 shows that the proportion of those with a degree or professional qualification was highest in the 25 to 34 and 35 to 44 age categories (37 and 38 per cent, respectively) and can then be seen to decrease by increasing age group. The proportion was lowest for those aged 16 to 24 (12 per cent), but this is likely to be because many adults in this age category were in higher or further education and had therefore not completed degree qualifications.

In contrast, one in five adults (20 per cent) had none of the qualifications presented. Of these, the highest proportion was in the 75 and over age group, with around half (48 per cent) having no qualifications.

Table 5.1: Highest level of qualification held by gender and age

Column percentages, 2013 data

Adults	Male	Female	16 to 24	25 to 34	35 to 44	45 to 59	60 to 74	75+	All
Degree, Professional Qualification	27	28	12	37	38	30	24	19	27
HNC/HND or equivalent	11	11	12	16	13	11	7	4	11
Higher, A level or equivalent	19	15	36	17	16	15	12	7	17
O Grade, Standard Grade or equivalent	20	19	30	20	21	22	11	7	19
Other qualification	4	6	1	1	1	2	12	14	5
No qualifications	19	21	7	9	10	19	35	48	20
Qualifications not known	1	1	1	1	0	0	0	2	1
Total	100	100	100	100	100	100	100	100	100
Base	4,450	5,470	830	1,350	1,450	2,590	2,400	1,300	9,920

Links between degree level qualifications and higher incomes can be seen among working adults^[58] (Table 5.2). In 2013, as income increased, the proportion of working age adults with a degree or professional qualification increases, while conversely, the proportion with no qualifications decreases (Figure 5.1).

Figure 5.1: Highest level of qualifications held by working adults by net annual household income

2013 data, Adults (base: 6,900)

Percentage of adults

Table 5.2: Highest level of qualifications held by working adults by net annual household income

Column percentages, 2013 data

Working adults	£0 - £6,000	£6,001 - £10,000	£10,001 - £15,000	£15,001 - £20,000	£20,001 - £25,000	£25,001 - £30,000	£30,001 - £40,000	Over £40,000	All
Degree, Professional Qualification	18	12	16	19	24	24	33	49	29
HNC/HND or equivalent	8	9	9	12	11	15	15	14	13
Higher, A level or equivalent	30	20	18	18	21	21	19	18	19
O Grade, Standard Grade or equivalent	20	24	27	26	26	25	22	15	22
Other qualification	1	3	4	3	3	2	2	1	2
No qualifications	22	31	26	21	13	13	8	4	14
Qualifications not known	1	1	1	1	1	0	1	0	1
Total	100	100	100	100	100	100	100	100	100
Base	180	550	1,030	1,020	860	720	1,080	1,460	6,900

CURRENT ECONOMIC SITUATION

A higher proportion of men (58 per cent) compared to women (49 per cent) were currently in work. This is demonstrated in Table 5.3, with some of the key differences picked out and displayed graphically in Figure 5.2, which shows that men were more likely to be full-time employed or self-employed, while women were more likely to be part-time employed or looking after the home or family.

Figure 5.2: Current economic situation of adults aged 16 and over

2013 data, Adults (base: 9,920)

Percentage of adults

Table 5.3: Current economic situation of adults aged 16 and over

Adults	Male	Female	All
Self employed	8	4	6
Employed full time	47	29	37
Employed part time	4	17	10
Looking after the home or family	1	10	6
Permanently retired from work	21	26	24
Unemployed and seeking work	6	4	5
Education/training	8	7	7
Permanently sick or disabled	5	3	4
Other	1	1	1
Total	100	100	100
Base	4,450	5,470	9,920

Current economic situation of working age adults

Table 5.4 shows that men of working age were more likely to be employed in paid work compared to women. Men were employed predominantly either full-time (57 per cent) or were self-employed (9 per cent). Taken together with the relatively small proportion of working age men employed part-time, this means that over two-thirds (70 per cent) of adult men of working age were currently engaged in some form of paid work.

In comparison, 62 per cent of working age women were in some form of paid work. However, there was greater variation in the how women were employed. Full-time employment was the most common type of employment and accounted for 37 per cent of working age women. However, unlike men, the next most common option among women was part-time employment which accounted for 21 per cent of working age women.

It was relatively uncommon for men or women of working age to be permanently retired from work (5 per cent males; 7 per cent females). This is likely to have under-represented all those who have taken early retirement as some who do so will subsequently take up other employment opportunities.

Table 5.4: Current economic situation of adults of working age by gender

Column percentages, 2013 data

Working age adults (16-64)	Male	Female	All
Self employed	9	5	7
Employed full time	57	37	47
Employed part time	4	21	12
Looking after the home or family	1	13	7
Permanently retired from work	5	7	6
Unemployed and seeking work	8	5	6
At school	3	2	3
Higher/Further education	7	6	6
Government work/training scheme	0	0	0
Permanently sick or disabled	6	4	5
Unable to work due to short term ill-health	1	1	1
Other	0	0	0
Total	100	100	100
Base	3,260	3,840	7,100

There was a relationship between the highest level of qualification and full time employment, with those who had attained degree level or professional qualifications having the highest proportion in full-time employment (60 per cent). In contrast, 29 per cent with no qualifications were in full time employment. This group also had the highest proportion (18 per cent) who are permanently sick or disabled.

Table 5.5: Current economic situation of adults of working age by highest level of qualification

Column percentages, 2013 data

Working age adults (16-64)	Degree, Professional Qualification	HNC/HND or equivalent	Higher, A level or equivalent	O Grade, Standard Grade or equivalent	Other qualification	No qualifications	Qualifications not known	All
Self employed	8	8	7	6	3	4	*	7
Employed full time	60	55	42	42	35	29	*	47
Employed part time	11	14	12	14	10	12	*	12
Looking after the home or family	5	6	6	9	12	10	*	7
Permanently retired from work	7	3	4	3	21	9	*	6
Unemployed and seeking work	2	4	4	10	9	13	*	6
At school	-	0	4	5	2	3	*	3
Higher/Further education	4	7	18	3	1	1	*	6
Government work/training scheme	-	-	0	0	-	0	*	0
Permanently sick or disabled	1	2	2	5	7	18	*	5
Unable to work due to short term ill-health	0	1	1	1	0	2	*	1
Other	0	-	-	0	1	0	*	0
Total	100	100	100	100	100	100	100	100
Base	2,110	890	1,290	1,540	170	1,050	40	7,100

It is possible to compare the differing economic situations of the adults with limiting long-term conditions with the rest of the population (Table 5.6). In 2013, around three in ten (28 per cent) adults of working age with a long-standing illness, health problem or disability were permanently sick or disabled.

Around one in five (21 per cent) working age adults who reported having a long standing limiting illness or disability were in full-time employment compared with around half (52 per cent) of those who did not. Excluding those who are permanently sick or disabled, the proportion of people with health issues who were in full-time employment rises to 29 per cent.

Table 5.6: Current economic situation of adults of working age by long-standing limiting illness, health problem or disability

Column percentages, 2013 data

Working age adults (16-64)	Limiting long-term condition	Non-limiting long-term condition	No long-term condition	All	Excluding 'Permanently sick or disabled'
					Limiting long-term condition	Non-limiting long-term condition	No long-term condition	All
Self employed	4	8	7	7	5	8	7	7
Employed full time	21	43	52	47	29	43	52	49
Employed part time	8	17	13	12	12	17	13	13
Looking after the home or family	9	6	7	7	12	7	7	7
Permanently retired from work	11	13	4	6	15	13	4	6
Unemployed and seeking work	9	7	6	6	13	8	6	7
At school	1	1	3	3	2	1	3	3
Higher/Further education	3	2	7	6	4	2	7	7
Government work/training scheme	0	-	0	0	0	-	0	0
Permanently sick or disabled	28	1	0	5	-	-	-	-
Unable to work due to short term ill-health	4	1	0	1	6	1	0	1
Other	0	1	0	0	0	1	0	0
Total	100	100	100	100	100	100	100	100
Base	1,350	400	5,310	7,060	940	390	5,300	6,630

WORKING HOUSEHOLDS

In this section the focus is on working households. Firstly, the number of adults in paid employment^[59] in households is examined. Subsequently, adults of working age are investigated in more detail.

Adults in paid employment

As Figure 5.3 shows, in 2013 for Scotland as a whole, six in ten households included at least one adult in paid employment. This was made up of a third of households (33 per cent) containing two or more adults in paid employment and 28 per cent having one adult in paid employment. The remaining households (39 per cent) contained no adults in paid employment.

The number of working adults in a household varied according to the deprivation levels of the area in which they were situated^[60]. Half of the households in the 15 per cent most deprived of areas contained no adults in paid employment (52 per cent). Conversely the majority of households in the rest of Scotland contain one or more working adult (62 per cent compared with 38 per cent having no adults in paid employment).

It is important to note that while these estimates demonstrate that households in the most deprived areas were less likely contain adults in employment, these households also contained fewer adults (see Chapter 2) and we would therefore expect to see a smaller proportion of households in these areas to have two or more working adults.

Figure 5.3: Number of adults in paid employment by Scottish Index of Multiple Deprivation

2013 data, Households (base: 10,650; minimum: 1,530)

Women of working age

The final section of this chapter focuses on the current economic situation of women of working age and examines the difference in situation according to whether there are children in the household.

Table 5.4 demonstrated that the majority of women of working age are in some form of work and Table 5.7 shows that the presence of children in the household does not significantly affect this. The 2013 SHS found that 61 per cent of women in households containing children were in work, compared to 63 per cent of those without children.

The main differences between the two groups of working age women were that a higher proportion of those with no children in the household were employed full-time (43 per cent compared with 28 per cent of those where children are present), while a higher proportion with children in the household were looking after the home or family (25 per cent compared with 5 per cent of those with no children present).

Table 5.7: Current economic situation of women by presence of children in the household

Column percentages, 2013 data

Working age females (16-64)	Yes, have children	No children	All
Self employed	5	5	5
Employed full time	28	43	37
Employed part time	29	15	21
Looking after the home or family	25	5	13
Permanently retired from work	0	11	7
Unemployed and seeking work	5	5	5
At school	3	2	2
Higher/Further education	4	8	6
Government work/training scheme	-	0	0
Permanently sick or disabled	1	6	4
Unable to work due to short term ill-health	1	1	1
Other	0	0	0
Total	100	100	100
Base	1,440	2,400	3,840