Business News Round Up (14/06/2022)
Royal Bank of Scotland PMI shows Scottish private sector output expanding at softer pace during May
The latest Royal Bank of Scotland PMI data indicated a softer expansion of private sector output across Scotland in May, with the seasonally adjusted headline Royal Bank of Scotland Business Activity Index – a measure of combined manufacturing and service sector output – falling from 58.9 in April to a three-month low of 55.9 in May. Slower increases in output were seen across both manufacturing and service sectors, with the former noting the slower rate of growth overall. Meanwhile, total new work increased at the softest pace for four months, which was partly due to a renewed fall in new business at goods producers. On a more positive note, overall employment rose at the fastest pace since October 2021 amid a stronger upturn in backlogs of work. May data signalled a rise in total new orders placed with private sector firms in Scotland. The upturn was driven by a strong increase in sales at service providers, as manufacturers noted a renewed fall in new business. As a result, composite new orders expanded at the softest rate for four months, albeit one that was solid overall. Where a rise was seen, firms often noted improved market conditions and an ongoing recovery from the pandemic, which had helped to lift customer demand and support new client wins.
The share of young people who are workless has fallen by over a quarter since the mid-1990s
The share of young people who are workless has fallen by over a quarter since the mid-1990s, when it was a major social and economic problem, but this decline is predominantly down to falling inactivity among young women, with inactivity among young men now rising, according to new research published today by the Resolution Foundation. The report Not working, supported by the Health Foundation, finds that youth worklessness fell by 300,000 between 1995 and 2021, from 1.1 million to 800,000. Young women accounted for 280,000 of this decline, with overall worklessness falling by just 20,000 among young men. Youth worklessness among minority ethnic groups has also fallen sharply. Among young people from Black, Bangladeshi, and Pakistani backgrounds it has fallen by 9, 13 and 10 percentage points respectively. However, young people from these backgrounds are still more likely to be workless than those from White or Indian backgrounds. As well as shrinking overall, the research finds that the nature of youth worklessness in modern Britain has changed. Unemployment (in which a workless person is actively looking for work) has fallen for both young men and women, while economic inactivity (where a workless person is not looking for work) has fallen sharply for women (from 18 per cent in 1995 to 10 per cent in 2021) but risen for men (from 5 to 9 per cent).
More than half of Scottish visitor attractions struggle to recruit new staff
The Association of Scottish Visitor Attractions (ASVA) has launched a campaign to boost recruitment, as a survey showed that more than half are having trouble finding new staff. The research revealed that 55% of the more than 850 tourist destinations in Scotland experienced challenges recruiting staff last month. The industry body warned the recruitment difficulties were not only limiting attractions’ performance, but also their post-pandemic recovery, and it has now launched a recruitment drive to get more people working in the sector. ASVA chief executive Gordon Morrison said the sector provided more than 17,000 jobs and there was a “huge range of exciting roles available in every corner of the country”. He continued: “The range of fantastic job opportunities within our sector is unparalleled and, for those who want it, there is a hugely enjoyable and fulfilling career to be had working in some of Scotland’s most iconic, awe-inspiring venues, locations, and world-class experiences.” The attractions sector is a major contributor to the Scottish tourism economy, and in 2019 there were more than 65 million visitors to Scottish attractions. Heritage tourism alone is estimated to be worth £1.8bn to the Scottish economy.
https://www.insider.co.uk/news/more-half-scottish-visitor-attractions-27219381
UK economy shrinks for two months in a row, with recession calls growing
The UK economy unexpectedly contracted for two months in a row, according to new official figures, while business leaders warn that we could be heading for a recession this year and into the next. Gross domestic product in April fell 0.3% on the previous month, the Office for National Statistics estimated, when growth of 0.1% had been forecast, following zero GDP growth in February and a 0.1% decline in March. Industrial production fell 0.6% in the month of April, following on from a 0.2% decline in March, and far undershooting the forecast 0.3% rebound. Manufacturing companies reported being affected by rising fuel and energy prices, said ONS director of economic statistics Darren Morgan., with the ending of free Covid testing in March weighing on growth. “A big drop in the health sector due to the winding down of the test and trace scheme pushed the UK economy into negative territory in April,” he said. These factors were partially offset by growth in car sales, which recovered from a significantly weaker than usual March.