The number of Renfrewshire residents in employment has fallen by around 8,100 in two years as economic inactivity and long-term sickness have increased.
The figures were presented to Renfrewshire Council’s Economy and Regeneration Policy Board on Tuesday 25th August 2026.
Renfrewshire’s employment rate fell from 76.3% in 2024 to an estimated 69.1% in March 2026.
The number of residents in employment dropped from around 90,600 to 82,500 during the same period.
However, unemployment increased by only around 300 people, from 3,300 to 3,600.
The council report said this suggested that most of the decline was caused by people leaving the labour market altogether rather than becoming unemployed.
Economic inactivity increased by approximately 6,800 people, from 25,100 in 2024 to 31,900 in March 2026.
The number classed as economically inactive because of long-term sickness increased by 5,000, from 7,600 to 12,600.
The report described Renfrewshire’s labour market figures as showing a “participation crisis” and said health-related barriers had become a major factor in whether people remained in work.
Economic Development Manager Ruth Cooper told the board: “We are usually quite confident in the employability side that, if we have people who want to look for work and are on the claimant register and want to work with us, we have a really good chance of being able to help people back into work. However, the number of people who are sitting on health-related benefits who are not engaging at all is really hard.”
She said mental health support was one area which had grown substantially in recent years.
The council plans to examine the figures in greater detail with health services and the Department for Work and Pensions.
Officers will try to obtain a ward-by-ward breakdown to establish whether economic inactivity is concentrated in particular parts of Renfrewshire.
Despite the fall in employment, Renfrewshire’s claimant rate remained below the Scottish and Great Britain rates in June 2026.
Renfrewshire’s rate was 2.9%, compared with 3.1% across Scotland and 3.9% across Great Britain.
The local rate among people aged between 18 and 24 was 4.9%, which was higher than the Scottish figure of 4.5% but below the Great Britain rate of 5.7%.
The board agreed that the council should pursue relevant funding opportunities to increase employment participation.
A further report examining falling employment levels and long-term health conditions will be presented to a future meeting.