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?

Administrative data

Based on administrative data on benefits claimed, in August 2023:

• 521,487 people aged 16-64 in Scotland claimed out of work benefits.
• Almost 80% of people lacking paid employment and claiming benefits do so because of poor health or caring responsibilities:
  • Two-thirds were claiming health-related benefits due to their limited capacity to work (68%, 356,000)
  • Another 58,000 people (11%) were out of work with young children aged 2 or younger.
• ~ 110,000 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.