The SNP’s new economy minister has promised to get more sick people back into work to help tackle a skills shortage across Scotland.
In her first major speech since being promoted to the role, Mairi McAllan said there were “too many” Scots — almost a quarter of a million — classed as economically inactive and unable to take up employment.
She plans to collaborate with other government departments to make participation in the labour market “more inclusive” for people with mental or physical ailments.
McAllan, at an event at the Edinburgh office of law firm Brodies, said: “While the past year has been tough for the economy and for people’s pockets, the labour market has remained tight with unemployment around 4 per cent and many employers … experiencing shortages, especially in areas like construction and hospitality.
“Our shared conundrum is that whilst you and others are struggling to find people to do the work, too many people in Scotland, around 240,000, are currently economically inactive due to ill-health.
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“So my next priority is I want to ensure inclusivity in our economy. Breaking down as far as possible barriers to participation.”
McAllan went on to say that a need to find “long-term solutions which tackle the physical and mental health barriers to work” and pointed to close to £200 million of government funding which had been allocated to employability services.
The most recent data from the Office for National Statistics showed that 755,000 working-age people in Scotland were classed as economically inactive, about 22 per cent of all 16 to 64-year-olds, in the October to December period of last year.
Some of those are in full-time education or act as the main carers for family members but it is estimated that about 240,000 are unable to work because of ill health.
Daniel Johnson, the economy spokesman for Scottish Labour, said: “The SNP’s mismanagement of both our NHS and our economy has left far too many Scots excluded from the workforce. The SNP’s failure to address this issue has deprived individuals of opportunities and left our entire economy weaker.
“We need urgent action to drive down record waiting lists so people can get the help they need, as well as action to build a stronger, fairer economy that enables people to work in a way that meets their needs.”
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Peter Kelly, the director of the Poverty Alliance, said: “A wellbeing economy is one that provides jobs that pay at least a real living wage, that are suitable and flexible enough to meet people’s different needs and responsibilities, and that people can get to easily from their communities.
“We can and should provide tailored support for equal access to employment, but so long as we have an unjust economy that doesn’t provide suitable jobs, people will continue to face barriers to entering or sustaining paid work.
“This often traps them, and their families, in poverty.
“Building a wellbeing economy isn’t the responsibility of individuals who are struggling with health issues and to keep their heads above water in the middle of a cost of living crisis, it’s the responsibility of our political and business leaders.”
Sarah Davidson, the chief executive of the Carnegie UK charity, said: “There is no doubt that for those who can work having a job is good for your wellbeing, especially if it’s a good quality job. Investing for the long-term in our mental and physical health is the smart thing for government to do while ensuring the right support for those who are unable to work.”
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McAllan also used the speech to reiterate the government’s commitment to net zero and making the most of opportunities in decarbonising the economy.
She also highlighted strengths in existing areas such as education, financial services, tourism and life sciences.
Murdo Fraser, the Scottish Conservative business spokesman, said: “It should not have taken the latest SNP economy secretary to belatedly recognise the problem long-term sickness is having on our economy.
“These issues have been clear since we emerged from the pandemic, but the SNP have failed to address them. By sharp contrast, the UK government acted swiftly to put measures in place to get long-term sick people, wherever possible, to once again be part of the workforce.
“The SNP government say they are determined to get more people into work, yet at the same time Shona Robison [Scottish finance secretary] has slashed over £30 million from the employability budget. Given Scotland’s sluggish growth, Mairi McAllan must be bold and ambitious when it comes to bolstering Scotland’s workforce and challenge her colleague over these cuts.”
