Business News Round Up (16/01/2024)
UK annual wage growth slows to 6.5% as vacancies continue falling
Annual growth in employees’ average total earnings, including bonuses, fell to 6.5% between September and November 2023, according to the Office for National Statistics.In its labour market overview, the agency found that annual growth in real terms, adjusted for inflation, was 1.3% over the three-month period. Similarly, the estimated number of vacancies in the last quarter of 2023 continued to fall to 934,000 – a 49,000 reduction – marking Q4 2023 as the 18th consecutive quarter of vacancy falls, and the longest consecutive run of quarterly falls ever recorded. However, the ONS noted the figures were still above pre-pandemic levels. The UK employment rate increased by 0.1 percentage points to 75.8% over the quarter, whereas the unemployment rate remained unchanged at 4.2%. The economic inactivity rate, instead, decreased by 0.1 percentage points to 20.8%.
https://www.investmentweek.co.uk/news/4164136/uk-annual-wage-growth-slows-vacancies-continue-falling
Unemployment rate in Scotland down slightly to 3.8%
Scotland’s unemployment figures have seen little change in the latest data, with the jobless rate at 3.8% between September and November 2023. The figure is down only slightly from 3.9% in the previous quarter’s experimental data from the Office for National Statistics (ONS). Meanwhile, the employment rate was at 58.9% and the economic inactivity rate was at 38.8% between September and November. Both of these saw little change from the previous quarter. Estimates from HMRC suggest there were 2.46 million payrolled employees in Scotland during December, a figure up by 0.9% year-on-year. Scottish Wellbeing Economy Secretary Neil Gray said: “These welcome latest figures, for December 2023, show the highest number of payrolled employees in Scotland since the series began. They reflect the Scottish Government’s commitment to using our limited powers to support more people into work through employability and skills support amid ongoing economic challenges.”
https://www.insider.co.uk/news/unemployment-rate-scotland-down-slightly-31890927
UK bosses much more optimistic about 2024 than last year, PwC survey suggests
Bosses of UK firms are significantly more optimistic about the prospects for the UK economy in 2024 than they were a year ago, according to a new survey. PwC’s annual global CEO survey showed that 39% of UK bosses expect the economy to improve in 2024, up from just 9% last year. Confidence in the domestic economy likely reflects easing inflation, rising real incomes and an expectation that the Bank of England will soon start cutting interest rates. “Confidence breeds confidence when it comes to the economy, so it’s encouraging to see UK business leaders feeling more optimistic about the UK’s prospects than last year,” Kevin Ellis, senior partner at PwC UK said. Improving confidence in the economy was reflected in mooted M&A activity. Over half of surveyed CEOs expect to make at least one major acquisition in the next three years, the survey showed.
Scotch Whisky boosts UK economy by £7.1bn
Figures have shown that the Scotch Whisky industry contributed £7.1bn to the UK Economy in 2022. The new report by the Scottish Whisky Association (SWA) has also revealed that the industry supports 66000 jobs across the UK, of which 41000 are in Scotland, and is responsible for generating £3 in every £100 of Scotland’s Gross Value Added (GVA). Scotch Whisky is reportedly the second-most productive sector in Scotland, ranked only behind energy including renewables. Mark Kent, chief executive of the SWA, said: “The Scotch Whisky industry has once again proven its economic significance to the UK domestically and on the world stage, and these figures highlight the importance of backing a key sector for productivity, exports and employment.” Data shows that 75% of the total GVA of the Scotch Whisky industry is generated in Scotland, equal to £5.3bn annually.
https://www.heraldscotland.com/news/24050452.scotch-whisky-boosts-uk-economy-7-1bn/