Business News Round Up (12/12/2023)
UK productivity growth driven by minority of high performing companies
The UK is increasingly reliant on a narrow group of high-performing companies to drive its productivity growth, underscoring the fragile foundations on which the country is building its economic future. The most efficient 10 per cent of businesses were responsible for 63 per cent of the annual growth in UK labour productivity between 2011 and 2019, up from 49 per cent from 1998-2007, according to data published by the Office for National Statistics on Monday. The data helps shed light on the UK’s so-called productivity puzzle, in which output per hour worked grew by 2.2 per cent annually between 1971 and 2007, but only 0.6 per cent between 2011 and 2022. Most of the slowdown in UK productivity was driven by companies with average levels of output per worker.
https://www.ft.com/content/8f363db4-4122-4f04-8d7f-6b7498bc474f
Scottish hiring activity rose in November despite UK downturn
Following three consecutive months of decline, recruiters in Scotland pointed to a renewed rise in permanent staff appointments in November. While the rate of growth was modest, it still contrasted with a steep downturn at the UK level.According to the latest Royal Bank of Scotland Report on Jobs, there was a renewed rise in hiring activity across Scotland in November. The Report on Jobs is based on a monthly survey of around 70 recruitment and employment consultants, providing an up-to-date view of Scottish labour market trends. The data for last month showed that there were mild expansions for both permanent placements and temp billings, amid reports of successful recruitment campaigns and the commencement of projects with clients.In terms of labour supply, while permanent staff availability fell due to increased hesitancy given the economic climate, temp candidate availability expanded for the second month running, in part due to redundancies.
https://www.digit.fyi/scottish-hiring-activity-rose-in-november-despite-uk-downturn/
Britain’s small firms cut back on investment to protect profits
Small- and medium-sized businesses across the UK are cutting back on investment to get their finances in order as they grapple with high interest rates and a slowing economy, according to accounting software provider Sage. Small- and medium-sized businesses across the UK are cutting back on investment to get their finances in order as they grapple with high interest rates and a slowing economy, according to accounting software provider Sage. Figures drawn from data on 134,000 companies using Sage’s platform showed revenues were 2.5% lower in the three months to September compared with a year ago. However, profits held up as costs fell and investment was cut. The figures suggest the sector is preparing for a difficult period but coping. It is important because smaller firms account for three-fifths of employment in the UK and about half of private sector turnover, according to the Federation of Small Businesses.
Scotland has highest proportion of UK green job adverts
Scotland continues to lead the way in the creation of green jobs, with the highest proportion of roles advertised, compared with other areas of the UK. According to PwC UK’s Green Jobs Barometer, Scotland is one of only two nations or regions, alongside Northern Ireland, to have recorded an increase in the number of green jobs advertised this year – up by 7.6%. As a result, green jobs as a proportion of all job adverts is significantly higher than the UK average (2.3%), at 4.04% – increasing from 3.3% in 2022. The barometer tracks movements in green job creation, job loss, carbon intensity of employment and worker sentiment across regions and sectors. The latest iteration finds that the number of green jobs advertised in the UK has fallen from the record levels recorded in 2022, but at a smaller rate than the decline seen in the UK’s job market overall.
https://www.insider.co.uk/news/scotland-has-highest-proportion-uk-31629799