Business News Round Up (08/06/2023)
UK sees sharpest decline in tech investment across Europe
UK technology companies raised $7.4bn (£5.9bn) during the first half of 2023 in the sharpest funding decline across Europe, according to a new report.Data shows that UK tech investment fell by 57% year-over-year, while France decreased by 55% and Germany by 44%, according to analysis from investment firm Atomico. The research showed that last year UK tech companies raised the most across Europe in 2022, securing $17.3bn in the first half of the year. This also meant that the UK had the most ground to lose. Tech funding for French companies fell from $10.1bn to $4.6bn over the period, while German tech companies dropped from $8.1bn to $4.5bn. Rising interest rates, surging inflation and macroeconomic uncertainty stemming from Russia’s invasion of Ukraine have significantly slowed down investment levels from record levels in 2021. Meanwhile one in five global venture rounds during the first quarter of 2023 were down rounds, the Atomico report found – nearly four times higher than the same period in 2022.
Downturn in permanent jobs softens in May
The Scottish labour market saw a further drop in hiring activity during May, according to the latest RBS Report on Jobs. Lingering economic uncertainty continued to discourage both workers and firms alike, although the latest survey signalled a softer downturn in permanent placements, as some recruiters were able to fill long-standing vacancies and organise hires for new projects. Demand trends weakened, with growth in permanent vacancies slipping to a 27-month low, and temporary vacancies falling for the fifth straight month. As a result, pay pressures showed signs of easing in May. For the fourth successive month, Scottish recruiters registered a drop in permanent staff appointments in May. According to anecdotal evidence, employers were less confident in the economic outlook, which dampened overall hiring activity. That said, the rate of contraction was the softest in this sequence and only marginal, as some recruiters noted the fulfilment of long-standing vacancies and the initiation of new projects. Temp billings fell markedly across Scotland in May, extending the current run of reduction to eight months. The pace of contraction accelerated from April and was the strongest since February. Respondents widely linked the drop in temp billings to a lack of available work, while there were also mentions that the additional bank holiday weighed on staff hiring.
https://www.insider.co.uk/news/downturn-permanent-jobs-softens-30175609
Scottish deposit return delayed until October 2025
The deposit return scheme in Scotland is to be delayed until October 2025 at the earliest. The flagship recycling scheme was supposed to launch in March next year. But Circular Economy Minister Lorna Slater said she had been left with no choice after the UK government excluded glass from the Scottish scheme. She said she remained committed to introducing the recycling scheme – although it will be more limited than originally intended. The delay means that the Scottish scheme is likely to launch at the same time as similar proposals for other parts of the UK – as many retailers and drinks companies had been calling for. When it is finally introduced, the deposit return scheme (DRS) will see a 20p charge placed on drinks containers which would be refunded to consumers when they return the bottles and cans in a bid to increase recycling levels. Larger stores, shopping centres and community hubs will operate reverse vending machines for people to return their containers. Ms Slater said: “The overwhelming feedback from producers, retailers and hospitality is that they cannot prepare for a March launch based on the changes being required by the UK government without any certainty even about what those changes would be”.
https://www.bbc.co.uk/news/uk-scotland-scotland-politics-65836297
Labour market downturn worsens in May as both permanent placements and temp billings fall
The latest KPMG and REC, UK Report on Jobs: North of England survey highlighted worsening jobs market conditions during May as permanent staff appointments and temporary billings both fell. Permanent placements fell for a third month running and at the sharpest rate since June 2020, while temp billings posted the first drop since last November. Jobs vacancy growth also slowed, while there was a pickup in staff availability amid redundancies. Nevertheless, wage pressures remained historically elevated, with the North of England registering the strongest rates of pay increases in May. The KPMG and REC, UK Report on Jobs: North of England is compiled by S&P Global from responses to questionnaires sent to around 150 recruitment and employment consultancies in the North of England. Warren Middleton, Office Senior Partner at KPMG in Manchester, said: “The latest findings reflect mutual hesitation from both businesses and prospective candidates here in the North as inflationary pressures continue to bite for all. This has resulted in the sharpest drop-off in permanent appointments across the region since the early stages of the pandemic back in June 2020, with temporary placements also now in decline for the first time in six months. We are seeing some green shoots, however, with the availability of those looking for permanent roles on the rise for a third consecutive month. Both parties will be hoping supply and demand marry up soon to help reverse the recent downturn before it gets any worse.”