Business News Round Up (13/10/2022)
Tech jobs tracker shows 200 per cent growth in roles in Scotland over last 12 months
Demand for technology professionals in Scotland increased by more than 200 per cent in 12 months, according to the latest UK Tech Talent Tracker from Accenture. Despite the technology jobs market easing in the first half of 2022, the tracker found growth in job posts and rising demand in new skills such as quantum, based on an analysis of LinkedIn’s professional network data. Demand for quantum computing skills was up 1,175 per cent year-on-year and blockchain up 571 per cent, with cloud up 213 per cent, data analytics by 152 per cent and AI by 103 per cent. As these technologies evolve, demand for digital ethics professionals has also increased considerably (up 253 per cent) while companies also seek to invest in cybersecurity (up 268 per cent). Much of the rate of growth year-on-year exceeded job vacancy trends in other UK centres, such as Newcastle (up 85 per cent year-on-year), Brighton (up 40 per cent), and Birmingham (up 25 per cent). Nonetheless, the rapid rise in hiring has shown signs of easing across the UK, with open technology roles declining by four per cent in both Scotland and across the UK during the first six months of 2022. While the pool of UK technology professionals on LinkedIn grew during the pandemic, from 730,000 in early 2020 to nearly 935,000 professionals in July 2022, the current availability of technology professionals continues to be outpaced by demand.
NatWest PMI survey records drop in North West business activity for the first time since January 2021
High-street bank, NatWest, has found business activity in the North-west fell for the first time since January 2021 according to its September Purchasing Manager’s Index (PMI) survey. The national survey found business activity fell in all UK regions barring London and the Yorkshire & Humber regions. The North-west recorded a PMI of 49.4 (figures above 50 indicate economic growth for a region), indicating a slightly slower decline in output that the nation as a whole. Respondents to NatWest’s PMI survey indicated a fall in new inflows of work in the North-west, however confidence remains high that businesses will experience growth over the next 12 months. Outstanding business and backlogs of work also fell in the North-west, in line with falling amounts of new sales reported. Hiring intentions and employment rates also remained strong, but did show signs of a slowdown when compared with previous surveys, with the South West and North East regions seeing workforce numbers decline. The bank’s economist have attributed the contraction in the economies of the North-west and other UK region’s to macro-economic factors, with rising inflation and interest rates and the falling value of the pound hurting customer demand.
Scottish housing market outlook challenging amid reduced market activity
The Scottish housing market outlook remains challenging amid a September fall in market activity, according to the latest RICS UK Residential Market Survey.A concern highlighted by respondents is on the impact of new Scottish Government initiatives will have on the supply of rental properties, potentially pushing up prices and reducing choice. A net balance of -24% of Scottish respondents to the latest survey reported a fall in new buyer enquiries in September, down from -20% in August. This is the fifth month in a row in which buyer interest has dropped. As the market loses further momentum, sales have unsurprisingly fallen too, with the September figure meaning that the number of sales in Scotland has now fallen for five months in succession. Looking ahead, sales expectations over the next three months also remain negative. A net balance of -5% of Scottish respondents expect sales to fall in the three months ahead. Surveyors in Scotland are also less positive about house prices than they were. While house prices have been propped up by a lack of supply most recently, and the latest net balance of +27% demonstrates that this has still been the case in the three months to September, the data is notably less positive than previously and continues the trend since May 2022 of an easing in house price growth (it was a net balance of +70% four months ago).
Investors nervous as market sell-off intensifies
The turmoil on UK financial markets has intensified after the Bank of England insisted its emergency bond-buying scheme would come to an end this week. The cost of government borrowing over 10 years briefly surged to its highest level since 2008, as investors demanded higher returns to lend to the UK. The Bank has been buying government bonds to prevent a sell-off which could put some pension schemes at risk. On Wednesday it stressed this help would end on Friday come what may. The Bank first stepped in last month after promises of huge, unfunded tax cuts in the chancellor’s “mini-budget” sparked a dramatic reaction on financial markets. The pound hit a record low and bond prices fell sharply, forcing the Bank to promise to buy up to £65bn of government bonds to support their price. So far it has only spent around £10bn of this pledged amount. But while the intervention initially worked, bond yields – in other words the interest rates the government pays to investors – are now close to or above the highs seen straight after the mini-budget. On Wednesday, government borrowing costs over 20 and 30 years both hit their highest levels since 2002.