Economic Inactivity And Ill-health In Scotland

15th March 2023

A report from the Fraser of Allender Institute.

Why should we pay attention to economic inactivity?
Inactivity is an indicator of the state of the labour market that measures how much of the population is not in work and is not ready to start work in the near future. It is typically calculated within the working-age population (aged 16-64).

Some inactivity is expected. For instance, students over age 16 are considered inactive, but it is generally agreed that education is a "good" reason not to be in the labour market.

Other types of inactivity may indicate barriers to the labour market that prevent people from paid work. Those not in work may suffer ill effects from being on low incomes, and may require more from the government in the form of benefits and other support.

What are the trends in inactivity?
Economic inactivity among working-age people (16-64) has risen in the UK since the start of the pandemic after years of falling rates. This trend has raised concerns that long-term ill-health (and possibly long Covid) are keeping people out of work.

Read the full report HERE