Support for lifelong learning, a new Scottish Careers Service, reforms to employability services and a Year of Service for Scottish youth could solve the fundamental problems holding the Scottish economy back, according to a new report commissioned by Our Scottish Future from the Social Market Foundation.
Think tank Our Scottish Future makes the progressive case for a prosperous and inclusive Scotland in the UK, supported by both UK and Scottish policies, and for change to make people’s lives better.
Today’s report, A Workforce Fit for the Future, recommends changes to skills policy and employability services to support this.
In it, the authors find that Scotland has Europe’s highest educated population – yet it still lags behind London and the South East in productivity and economic inactivity. This is within the context of sluggish growth across the whole UK, which is one of only two G7 countries with a higher rate of economic inactivity post-pandemic.
The report identifies two drivers for Scotland’s economic inactivity. Firstly, too many Scots are ‘underemployed’, meaning they are in jobs that do not match their qualifications and therefore are less economically productive. The second is that, as a result of issues like long-term sickness and lack of provision for social support and childcare, too many Scots are unable to participate in the workforce when they are eager to do so. 17% of Scotland’s economically inactive population want to work.
In order to solve these issues, the report suggests a variety of measures that can be taken by the Scottish Government, including an overhaul of skills policy; replacing the existing system of fragmented institutions with a new unified Scottish Careers Service; and a rigorous industrial strategy that builds on the clusters of high-growth industries where Scotland has an advantage.
The report authors argue that these measures should be supplemented with a lifelong Individual Learning Entitlement and better data collection, empowering Scottish institutions to support people throughout their career, to find the jobs that fulfil their potential and thereby reduce underemployment.
On employment policy, the paper suggests further devolution to regions to ensure joined-up local employability support, with management of Jobcentres passed from the DWP to regional groupings of local authorities. This could create new flexibility to address regional skills needs alongside regional economic development, as is being done in Combined Authorities with elected mayors in England.
A further key finding is that the Scottish Government’s flagship ‘No One Left Behind’ programme appears to underperform for disadvantaged groups, with wide gaps in performance between local authorities. The paper also calls for the expansion of employability support schemes that are growing elsewhere in the UK like Individual Placement and Support.
Finally, to ensure young people have the skills they need for the long-term, a Scottish Year of Service programme is suggested for 16-24 year olds, mirroring the successful UK Year of Service initiative.
Jim Gallagher, Chair of Our Scottish Future said:
“Scotland is bursting with potential. We’ve got great people, great ideas, and some industries that have massive potential for growth.
“Somehow, that is not yet leading to everyone being in a good job that makes the most of their talents.
“We need skills and employability policies that support industry and give people the best opportunities for success.
“That means having flexible policies that support the different job markets in different parts of Scotland. It means anticipating and meeting the needs of the growth sectors of the economy. It means having the right individual support to help everyone to find the best opportunity to use their talents.
“It also means offering everyone the opportunity to develop their skills throughout their lives, supported by robust and secure individual learning accounts.
“This report is an important contribution to discussion about how we can build a better Scottish future for all.”
Jamie Gollings, Interim Research Director of the Social Market Foundation and an author of the report said:
“Scotland has the potential to be a powerhouse of growth both in the UK and in the western world – but, thanks to underemployment and economic inactivity, it is lagging behind.
“‘A Workforce for the Future’ is the blueprint that both the UK and Scottish Government need to solve these endemic problems. Exciting new initiatives like a Scottish Careers Service, devolving welfare policy and introducing a Scottish Year of Service have the potential to make a real, tangible impact.
“Across the world, sluggish growth is the challenge of our time. By taking the practical measures this report proposes, and learning from best practice in both Westminster and Holyrood, Scotland has the potential to show the world how to achieve sustained long-term growth, and provide Scots with the good jobs and quality of life they deserve.”
Read the full report here.
