Business News Round Up (09/02/2026)
BDO: over half of mid-sized businesses in Scotland plan to invest in apprenticeships this year
BDO’s survey of 500 leaders of mid-sized businesses reveals that over a third (39%) in the country said they will start hiring apprentices, while 16% are increasing the number of apprentices they hire. This comes as Scotland has recently passed its Tertiary Education and Training (Funding and Governance) (Scotland) Bill, to redesign its skills landscape so that it works better for employers and Scotland’s economy. Separate research from BDO’s ‘Young Minds’ survey of 2,000 young people aged 18-25 in the UK, showed that whilst apprenticeships are a popular career route, 16% of young people are completely unaware of degree-level apprenticeships, with others finding access to quality apprenticeships a barrier. Location also remains a challenge, with 15% of university students or graduates in Scotland saying that they would have reconsidered their choice to go to university if they lived somewhere with more apprenticeship opportunities.
January sees slowest decline in permanent job placements for nine months
The North of England suffered a further decline in recruitment activity during January, although the drop in permanent staff appointments was the softest since April last year. In contrast, the latest KPMG and REC, UK Report on Jobs: North of England revealed that temp billings fell at a faster pace. Recruiters across the region, meanwhile, signalled softer falls in vacancies for both permanent and temporary workers, slower improvements in staff availability and stronger rates of pay growth than in December. The report is compiled by S&P Global from responses to questionnaires sent to around 150 recruitment and employment consultancies in the North of England. Following December’s rapid decline, the downturn in permanent placements across the North of England eased notably in January. Although solid, the rate of contraction was the weakest recorded since April last year.
A positive outlook for economic growth in Scotland, despite warning signs for the labour market
The outlook for both Scottish and UK economies has improved and looks to remain positive through 2027, according to the Fraser of Allander Institute at the University of Strathclyde. In the latest quarterly Economic Commentary, the Institute has forecasted that the Scottish economy will end 2025 with 1.3% growth and will continue to grow by 1.1% across 2026. This improvement over last quarter’s forecast mirrors similarly upbeat predictions from the Scottish Fiscal Commission (SFC) and the Office for Budget Responsibility (OBR). At the same time, the number of payrolled employees in Scotland has fallen consistently since mid-2024, with job losses concentrated in hospitality, education, and retail sectors. In recent months, the number of people on unemployment-related benefits has also ticked up.
Edinburgh’s £1.3 billion ‘city deal’ hailed for creating 30,000 jobs
The £1.3 billion ‘city deal’ powering economic growth for Edinburgh and the south-east of Scotland has been credited with creating 30,000 jobs. The deal, which launched in 2018, is at the halfway point in its 15-year delivery timeline and has already contributed £3.6 billion in economic growth. The scheme is supported with £300 million each from the Scottish and UK governments and over 5,000 businesses have engaged directly with the deal through partnerships or collaborations on training and skills development, innovation, and jobs. More than £1 billion in additional funding has been secured for Deal-related projects. From Fife to the Scottish Borders, the Deal is delivering investment across housing, transport, innovation, culture, and skills and employment. Highlights include seven new innovation hubs to increase links between university research and industry, housing developments that have so far delivered almost 8,500 new homes, and two industrial innovation zones.