Chamber and committees

Official labour market statistics do not include data on reasons why individuals are unemployed. However, there is data available on reasons why individuals are economically inactive and not participating in the labour market.

The latest ONS Annual Population Survey (APS) statistics for 16 to 24 year olds for January to December 2024, published on 16 April 2025, show an estimated 12.7% of economically inactive 16 to 24 year olds in Scotland gave their reason for being inactive as “long-term sick or disabled”.

The Scottish Government has published analysis on the link between economic inactivity and ill health. On 24 September 2024 an evidence review indicated an increase in physical and mental health conditions in inactive people since 2018, with rising numbers of young people citing mental health concerns as a reason for being economically inactive (Economic inactivity in Scotland: supporting those with longer-term health conditions and disabilities to remain economically active - gov.scot). Previous analysis published on 30 August 2023 identified physical and mental ill-health as possible barriers that prevent young people from entering the labour market (Economic inactivity of young people aged 16-24: Definition, reasons and potential future focus - gov.scot).

The Scottish Government does not hold this information, as teachers' absenteeism is a matter for local authorities as the employer.

I refer the member to the answer to question S6W-35738 on 17 March 2005. All answers to written Parliamentary Questions are available on the Parliament's website, the search facility for which can be found at https://www.parliament.scot/chamber-and-committees/written-questions-and-answers

The Scottish Government has information on the proportion of 16-24 year olds who are economically inactive due to being long-term sick or disabled from the National Records of Scotland Census 2022 results and the Office for National Statistics (ONS) Annual Population Survey (APS).

The National Records of Scotland Census results show there were around 11,700 people aged 16-24 who were economically inactive due to being long-term sick or disabled in 2022, 5.6% of all economically inactive 16 to 24 year olds.

The latest data from the ONS Annual Population Survey, which continues to be subject to increased volatility due to lower survey response rates in recent years, reports that an estimated 12.7% of economically inactive 16 to 24 year olds in Scotland gave their reason for being inactive as long-term sick or disabled for the period January to December 2024.

I refer the member to the answer to the question S6W-36532 on 29 April 2025. All answers to written Parliamentary Questions are available on the Parliament’s website, the search facility for which can be found at https://www.parliament.scot/chamber-and-committees/written-questions-and-answers

Numerous Scottish public bodies deliver support and tailored strategic investment into Scottish businesses including Scottish Enterprise, the Scottish National Investment Bank, Highlands and Islands Enterprise, South of Scotland Enterprise, Business Gateway and the Scottish Government’s £42m national Techscaler programme.

The Scottish Government-backed investment funds deployed by these organisations are designed to fill gaps in the supply of capital available to businesses and at the same time crowd in private capital to create a busier ecosystem of investors active in Scotland. Underpinned by Techscaler offering online education, expert mentoring, and a network of 14 hubs across seven regions in Scotland, these funds support tech startups from creation through to scale, ensuring support is accessible and rooted in communities across the country.

Examples of this funding and support include:

• Over £118m capital raised by founders since the inception of Techscaler in 2022 and in November 2024 Techscaler, in partnership with Focused for Business launched the Funding Accelerator programme designed to help Scottish startups secure their first or second equity funding round, with investments ranging from £100k to £1m.
• In 2024/25, Scottish Enterprise made 125 investments totalling £42.5m in early-stage companies, with 52% of these investments in companies located out with Edinburgh and Glasgow.
• South of Scotland Enterprise has supported 391 individuals in the South of Scotland as part of a Pathways pre-start pilot for under-represented groups, providing start-up grants of £1,000 to eligible participants.
• Highlands and Islands Enterprise IMPACT30 programme has supported 301 young entrepreneurs across its region and the Highlands and Islands Enterprise Techscaler Kickstart Grant Scheme offers grants ranging from £5,000 to £10,000 to ambitious tech founders and entrepreneurs in developing their business ideas.
• Through our Ecosystem Fund, we have supported various in-person and remote projects specifically focussed on access to finance, resulting in over 700 individuals growing their investment network.
• Scottish Government has consistently provided support for the Scottish EDGE business competition, including £1.4m in 2024-25, with an aim of identifying and supporting Scotland’s innovative, high growth potential entrepreneurial talent. This recently included a pilot Regional EDGE competition to specifically target support to different regions.
• To support the establishment of a network of entrepreneurial campuses, the Scottish Government allocated Converge with £100k to provide early-stage business microgrants. These microgrants have enabled 55 projects, run by university students and staff, to test their initial business idea. Microgrants were awarded to every university in Scotland to ensure all parts of the country have educational institutions that support entrepreneurial activity.

The information requested is not held centrally. However, data are available that show of the university spin-out companies formed in Scotland less than 5% have registered trading addresses out with Scotland.

I refer the member to the answer to the question S6W-36536 on 28 April 2025. All answers to written Parliamentary Questions are available on the Parliament’s website, the search facility for which can be found at https://www.parliament.scot/chamber-and-committees/written-questions-and-answers

In recent years the Scottish Government has invested significantly in manufacturing support infrastructure. The National Manufacturing Institute Scotland (NMIS) represents a £75 million investment by the Scottish Government and its agencies and has a mission to make Scotland a global leader in advanced, sustainable manufacturing. The Advancing Manufacturing Challenge Fund also led to the establishment of a range of facilities across Scotland with either a regional or sectoral focus. These include the Medical Device Manufacturing Centre based at Heriot Watt University, Smart Hub Lanarkshire based at New Lanarkshire College and the Advancing Manufacturing Centre at West Highland College

Meanwhile, we continue to work with the UK Government and local partners on the delivery of tailored regional projects in support of the manufacturing economy. These include the Advanced Manufacturing Innovation District Scotland and Investment Zone projects within the Glasgow City Region and The Manufacturing Innovation Centre for Moray within the Moray Growth Deal. We also anticipate that our Green Freeports package will have a catalytic effect on advanced manufacturing in the two regions affected.

Scottish Government officials and Ministers are in continuous dialogue with the UK Government about USA tariff barriers and we support all efforts to find mutually beneficial resolutions that are in the interests of Scotland. We have been clear that we need to see bold and decisive action from the UK Government that reflects the uncertainty that is being felt by business and families at this time.

We are also working closely with the UK Government’s Department for Business and Trade on its programme of Trade and Economic Cooperation with individual US States, to reduce trade barriers and advance trade and investment opportunities for the UK and Scotland.

The information requested could only be obtained at disproportionate cost as it is not held centrally.