Annual Population Survey in Scotland 2007: A Compendium of Labour Market Statistics

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Executive Summary

This publication presents analysis on the labour market, education and training. Results are presented for Scotland, Local Authority Areas, Deprived Areas, Urban/Rural Areas and, for the first time this year, the Highlands & Islands Enterprise Area.

Local Authority Areas

There were wide labour market and educational differences between the local authority areas within Scotland in 2007.

Working age people living in Glasgow City were least likely to be employed (estimated employment rate of 66.7%). Inactivity rates were also highest within Glasgow City with 28.3% of those of working age not participating it the labour market. However, a large proportion (27.1%) of those who were inactive within Glasgow City wanted to work.

Whereas, at the other end, working age people living in the Shetland Islands local authority area were most likely to be employed and least likely to be economically inactive (Shetland Islands had the highest employment rate estimate at 88.1% and the lowest economic inactivity rate estimate at 10.4%).

Although there remains a considerable number of inactive people, a large proportion have a willingness to work but are not available or able to do so. In 2007, the proportion of inactive people who wanted to work was highest in Angus (estimated at 34.8%).

The City of Edinburgh had the highest proportion of graduates in the resident workforce (estimated at 43.4%) and the Shetland Islands had the lowest proportion (estimated at 14.3%).

Deprived Areas

There were differences between the 15% most deprived areas in Scotland and the rest of Scotland in terms of economic activity and qualification attainment in 2007.

People living in the 15% most deprived areas were less likely to be in employment in 2007 (58.6% of working age people living in the 15% most deprived areas were estimated to be in employment compared to 78.9% for those living in the rest of Scotland).

People living in the 15% most deprived areas were also more likely to be unemployed in 2007 (11.4% of economically active people living in the 15% most deprived areas were estimated to be unemployed compared to 3.9% in the rest of Scotland).

In 2007, the proportion of children living in workless households in the 15% most deprived areas was estimated at 42.7%, over four times the rate for the rest of Scotland (estimated at 10.5%).

Those who were in employment and living in the 15% most deprived areas were less likely to be self employed in 2007 (3.8% of those in employment and living in the 15% most deprived areas were estimated to be self employed compared to an estimated 11.2% in the rest of Scotland).

Educational attainment was lower for workers living in the 15% most deprived areas (11.2% of those in employment and living in the 15% most deprived areas were estimated to be graduates compared to an estimate of 26.5% for those living in the rest of Scotland).

Urban/Rural Area

There were also marked differences in labour market and educational indicators between the urban and rural areas of Scotland in 2007.

People living in large urban areas were less likely to be in employment in 2007 (73.1% of working age people living in large urban areas were estimated to be in employment compared to an estimated 81.3% for those living in accessible rural areas). People living in large urban areas were also more likely to be unemployed in 2007 (5.4% of economically active people living in large urban areas were estimated to be unemployed compared to an estimated 2.6% for those living in remote rural areas).

In 2007, children in large urban areas were more likely to be living in a workless household (an estimated 21.8% of children in large urban areas were living in workless households compared to an estimated 5.1% for children living in remote rural areas).

The 2007 employment rate for those aged 50 to state pension age was lowest for those living in large urban areas (estimated at 67.8%) and highest for those living in accessible rural areas (estimated at 77.6%).

In 2007, the proportion of graduates in the resident workforce was estimated to be highest for those living in large urban areas (31.9%). This compares with only 17.8% for remote small towns.

Highlands & Islands Enterprise ( HIE) Region

Differences also exist in the key labour market and educational indicators between the Highlands & Islands Enterprise area and the rest of Scotland.

In 2007, the working age employment rate for the Highlands & Islands Enterprise area was 81.9%, higher than the employment rate for the rest of Scotland (75.5%). The unemployment rate in the Highlands & Islands Enterprise area was considerably lower than unemployment in the rest of Scotland (2.8% for HIE and 4.9% for the rest of Scotland).

People living in the Highlands & Islands Enterprise area were more likely to be self-employed (14.2%) and also more likely to have a second job (7.3%). The comparable figures for the rest of Scotland are 10.1% self-employment and 3.4% of working age people having a second job.

In 2007, 17.7% of the resident workforce in the Highlands & Islands Enterprise area were graduates, compared to 25.6% for the rest of Scotland.