Business News Round Up (08/10/2021)
Scottish hiring activity continues to surge during September
Hiring activity across Scotland continued to surge in September, according to the latest Royal Bank of Scotland data, rounding off a third quarter of unprecedented labour market activity. Further marked increases in both permanent placements and temporary billings were signalled by recruiters, with the rates of growth remaining close to their respective series records, despite easing since August. Demand for workers remained strong, as growth of vacancies for both permanent and temporary staff continued to rise rapidly. At the same time, the availability of candidates plummeted again. As a result, pay pressures intensified, with the rate of starters’ salary inflation hitting a fresh survey record. Recruiters across Scotland reported a further increase in the number of permanent staff appointments during September, amid reports of strong demand for staff as companies were continuing to step up hiring efforts. The rate of expansion slowed from August’s peak but was nonetheless the third-fastest on record. A similar trend was observed for the UK as a whole in September, where the rate of increase in permanent placements also slowed, but growth remained slightly faster than in Scotland.
https://www.insider.co.uk/news/scottish-hiring-activity-continues-surge-25159898
Staff shortages and supply chain issues pile pressure on North West businesses
Staff shortages and supply chain issues are piling increasing pressure on North West businesses, as the Government continues to grapple with the fallout from Brexit and the pandemic. According to BDO’s latest Rethinking the Economy survey of 500 mid-sized businesses, nearly a third of regional companies (31%) admitted that staff shortages were significantly affecting their ability to operate at normal levels, with the same number citing unexpected delays from international suppliers. The survey showed that a shortage of overseas workers, exacerbated by Brexit and the pandemic, was one of the biggest issues when recruiting staff, with 22% of mid-sized businesses stating that a lack of available talent in the region was also fuelling the problem. As a result, an overwhelming 94% of respondents said they intended to reduce their product lines or services to help manage staff shortages, with 42% admitting they would have to act within the next month if the situation doesn’t change. Many businesses anticipate that this reduction in services will only be a temporary measure, with 39% of companies planning to hire graduates and apprentices in an attempt to plug the skills gap.
Footfall down by a fifth amid ‘tepid’ return of shoppers
Retailers are seeing only a ‘tepid’ return of shoppers with footfall in Scotland down by a fifth on pre-pandemic figures. Scotland is once again the weakest part of the UK out with London and in spite of the opening of the £1 billion St James Quarter at the end of June. According to SRC-Sensormatic IQ data Scottish footfall fell by 19.9% in September compared to the same month in 2019, a 1.3 percentage point increase from August. This is below the UK average decline of 16.8% (Yo2Y). Shopping Centre footfall in Scotland saw an even steeper decline – by 30%. David Lonsdale, Director, Scottish Retail Consortium, said: “September saw a tepid third consecutive monthly improvement for shopper footfall as customers continued to gradually return to Scotland’s high streets. That said, retailers will be disappointed to see figures continuing to languish a fifth down on pre-pandemic levels, with Scotland once again the weakest part of the UK out-with London. This is despite September being the first full month since physical distancing restrictions were lifted in Scottish stores.”
Oxford’s exports contribute £732m to UK economy
A report by London Economics has revealed that the University of Oxford contributed a grand total of £15.7bn to the UK economy in the 2018/19 financial year. Of that £15.7bn, the report by the economic research consultancy said that the total direct, indirect, and induced impact of educational exports on the UK economy was a staggering £732m. The institution is attracting “many international students”, as its higher education offering is a “tradable activity with important and exports like any other tradable sector”, the report suggested. The report comes after international students in the UK were found to contribute £28.8bn to the economy yearly. The figure for Oxford was based on £393m being associated with international students’ tuition fees, while the other £340m was associated with their non-tuition fee expenditure while they studied at Oxford during that year. In the 2018-19 academic year, 4,345 Oxford students beginning their studies hailed from outside the UK –an overwhelming 74% from outside the EU, and 26% from the EU.