Business News Round Up (10/11/2022)

£9.3bn in economic growth could be unlocked to boost economy and create 150,000 jobs

The UK could generate £9.3 billion in economic value and create more than 150,000 jobs by helping more small and medium-sized enterprises (SMEs) to export goods through e-commerce, new research shows today.Economic modelling from the Social Market Foundation (SMF) shows that there are “significant” gains to be made for the UK economy by helping more firms to generate export sales through e-commerce. The findings of the independently produced report, Just a Click Away, have been supported by the Institute of Export & International Trade. The SMF said that by increasing SME e-commerce exports, ministers could raise economic growth and help ease the pressure on public finances. While merchandise exports across other advanced economies are up 3.5% since the end of 2019, the UK’s have fallen by 21%1. SMF modelling shows the potential gains for UK businesses, employment and GDP could see as many as 70,000 more SMEs exporting, with their turnover rising by £12.4 billion, resulting in an economic gain of £9.3 billion and supporting an additional 152,000 jobs.

Scotland sees renewed jobs downturn during October

Hiring activity across Scotland fell into decline during October, with both permanent staff appointments and temporary billings contracting. The latest Royal Bank of Scotland Report on Jobs survey showed that permanent jobs have now fallen in two of the past three months, while the downturn in temporary posts was the first seen since August 2020. October data also revealed further increases in starting salaries and temporary wages. However, rates of inflation continued to ease, signalling a mild waning of pressure on pay. Last month’s figures also highlighted a fall in permanent staff across Scotland. After a month of growth in September, the respective seasonally adjusted index reverted below the neutral 50.0 threshold to signal the second reduction in three months. The rate of contraction was the fastest seen in nearly two years, with recruiters often linking the fall to growing economic uncertainty and the cost-of-living crisis. Scottish recruitment consultancies signalled a reduction in temp billings during October, thereby ending a 25-month run of expansion. The rate of contraction was the quickest seen since July 2020, during the initial wave of the pandemic. According to panellists, the latest fall was driven by reduced activity at clients. Recruiters across Scotland noted a 21st successive monthly fall in permanent candidate availability during October. The pace of decline quickened on the month, with panellists linking the latest downturn to skill shortages and increased hesitancy to seek out new roles due to rising economic uncertainty.

https://www.insider.co.uk/news/scotland-sees-renewed-jobs-downturn-28454472

Economic gloom finally sweeps through UK jobs market

UK job growth has slimmed for the first time since the 2021 Covid-19 winter lockdown, driven by employers bracing for the longest recession on record, a new survey out today unveils. For the first time since February 2021, when the country was in the late stages of the third and longest pandemic lockdown, businesses trimmed hiring, according to the Recruitment and Employment Confederation (REC) and consultancy KPMG. The pair’s employment index dropped to 45 last month, down sharply from September, meaning there are fewer vacancies. Any reading below 50 indicates most employers recorded a hiring reversal. London led the overall survey lower, with the capital posting the weakest reading at 41.5. Demand for part-time staff also fell steeply, down to 50.1. Firms are reining in expansion plans over fears they could collapse during what is forecast by the Bank of England to be the longest recession on record at eight consecutive quarters. Inflation, running at a 40-year high of 10.1 per cent, and the Bank’s campaign to stem it by raising interest rates eight times in a row to three per cent has sent a chill through the economy. Up until now, the UK jobs market has held up astonishingly well despite the slowdown. Unemployment is at its lowest level since the 1970s, and the ratio of vacancies to jobless people is near a record high. These numbers have been partly driven by a large chunk of people dropping out of the jobs market.

Tech solutions to support Scotland’s environment receive £2.6m boost

Tech solutions to support the environment in Scotland are being sought through a national innovation accelerator programme. CivTech – the Scottish Government’s flagship procurement programme to match tech sector expertise to public sector ‘challenges’ – will focus heavily on net zero for its next cohort. Four nature-themed challenges were unveiled at the COP27 climate change summit in Egypt, following a £2.6m government commitment to support ‘evidence-based’ green technologies. The challenges were announced at ‘finance day’ at the Sharm El Sheikh event, with discussions focused on finance as a catalyst for progress on all aspects of the global climate agenda. It will examine how public and private finance can fund the development of infrastructure, technology, and innovation to turn billions of public money into trillions of total climate investment. Worth £650,000 each, the nature-themed challenges are part of CivTech’s first official partnership programme with NatureScot, the government agency responsible for Scotland’s natural heritage, called ‘Innovate for Nature.’ CivTech is the world’s first government-run accelerator for digital public services. The latest set of challenges are supported by £6m of Scottish Government funding, bringing together public finance with private sector innovation to solve major challenges facing the public and third sector in Scotland. It also supports tech innovators to grow their own business and industry profile. 

https://futurescot.com/tech-solutions-to-support-scotlands-environment-receive-2-6m-boost/