Income and employment: worklessness

Not in employment

People of working-age can be described as employed, unemployed or economically inactive.

• Being unemployed means that someone is available for and looking for paid work.
• Being economically inactive means that someone is not in paid work, available for or looking for work.

Many have health problems or caring responsibilities that limit their availability or capacity for work, and could not step into any job even if good opportunities were plentiful everywhere across Scotland. 

For those of working-age, being in paid employment is usually more protective of health than being unemployed or being economically inactive.

The number of people lacking paid work is affected by:

• the strength of the national economy
• local labour market demand (including employer recruitment and retention practices)

and the interaction of individual factors (such as skills, caring responsibilities and health) with factors such as education, childcare and public health.

How many people aged 16-64 lack paid work in Scotland?

Based on administrative data on benefits claimed, in August 2024:

• 567,254 working-age people in Scotland claimed out of work benefits.
• ~ 115,000 were unemployed, seeking work and claiming benefit. Almost all have signed a claimant commitment to look for work in exchange for benefit receipt and face a reduction in their benefit (‘sanction’) if they do not meet that agreement. An unknown number of unemployed people have childcare responsibilities or are in poor health.
• This means the majority of people claiming out of work benefits have health problems or caring responsibilities which limit their capacity to work.

Unemployment and Economic inactivity:

• In general, working-age people who are unemployed or economically inactive have poorer mental and physical health than those in employment (BMJ, 2023; Wilson et al, 2015
• In the period January-December 2024, the APS estimated there were 87,600 unemployed people and 608,000 economically inactive people aged 16-64 (excluding students) in Scotland.
• Of those who were economically inactive in Scotland (Jan-Dec 2024):
  • 269,000 were long-term sick
  • 128,500 were looking after family/home
  • 66,400 were inactive for 'other' reasons
  • 122,500 were early retired
  • 190,000 were students
• Although the Labour Force Survey may be overestimating economic inactivity, other data sources suggest that the number of people not in work or looking for work due to long-term sickness has increased in recent years.