Scotland's wellbeing economy monitor: July 2025

3. Indicator selection

Using the four capitals framework, indicators were selected that give a sense of how Scotland is performing on a national and local level. These indicators were selected based on the following criteria:

• Relevance: a clear link must exist between the indicator and the type of capital it represents
• Validity: the indicator must accurately measure what it is intended to
• Distinctiveness: the indicator should capture a unique aspect of wellbeing not captured by other indicators
• Practicality: the indicator must provide value for money, and it must be feasible and affordable to obtain data
• Clarity: the indicator must be straightforward to interpret
• Credibility: the indicator must be based upon impartial, reliable data
• Precise: the indicator must be able to show change over time
• Comparability: there must be sufficient data for the indicator to draw comparisons over time, and ideally with other wellbeing economy government group members^[8]

The indicators are intended to give an overview or indication – they are not a comprehensive measure of the capitals. For that reason, indicators which measure a single, easily interpreted issue – for example, the gender pay gap – have been selected in preference to composite indicators which may be more holistic but more difficult to interpret and incorporate more value judgements on the relative importance of various issues.