Business News Round Up (19/12/2023)
More than 42,000 jobs supported by Scottish renewable energy sector – – Fraser of Allander Institute
Scotland’s renewable energy industry and its supply chain supported more than 42,000 jobs and generated more than £10.1bn of output in 2021. Strathclyde University’s Fraser of Allander Institute reported that for the first time offshore wind is the renewable energy technology supporting the most employment across the Scottish economy, with 15,005 full time equivalent roles, while onshore wind supports 12,030 roles and renewable heat supports 7,220 roles. Offshore wind also powered the most activity across the Scottish economy, generating more than £4bn, followed by onshore wind with £3.4bn and hydropower with £1.2bn. The report assessed the impact of the renewable energy sector and its spill-over benefits on Scotland’s supply chain and economy. The renewable energy sector is not currently defined in national statistics published by either the UK or Scottish governments, so the size of the sector has been estimated using data published by the Office for National Statistics (ONS).
https://www.insider.co.uk/news/more-42000-jobs-supported-scottish-31697371
Job vacancies fall below 1m but salaries still rising
Job vacancies across the UK have dipped below 1 million for the first time since May 2021, indicating that the labour market is cooling off. Advertised openings fell 2.72% between October and November to just 998,562 postings from the 1.02 million job postings in October, according to job search engine Adzuna. This is an 8.55% decline compared to the same time last year and the first time during 2023 that the annual decline has worsened, month-on-month. October’s year-on-year figures were 5.08% down on 2022’s numbers. Demand for workers has fallen as the economy has weakened and companies have responded by tightening their hiring policies, though there is also evidence elsewhere of the advance of AI into the jobs market which is replacing some human tasks. GDP figures for October showed growth unexpectedly fall 0.3%, with some economists saying the UK could still slip into recession.
https://dailybusinessgroup.co.uk/2023/12/job-vacancies-fall-below-1m-but-salaries-still-rising/
New survey shows that hybrid working seems to be here to stay
A survey of over 1,000 businesses, of which 96% were SMEs, found just 27% of respondents predict their staff will be fully in-person over the next five years. 47% anticipate their staff to be mostly in-person, 16% expect mostly remote and 8 per cent fully remote. The research found a clear divide between different sectors, with business-to-business services firms (such as the finance and legal sectors) more likely to expect remote working. Only 17% of B2B services organisations expect fully in person working, while the figure for manufacturers is 38%, and B2C services 37%. Companies were also asked about the connectivity tools they use such as video calling and cloud security. A quarter of firms (25%) say they are not confident they have the knowledge to make the right purchasing decisions, while three-quarters (75%) are confident. Over half (55%) are relying on external experts when making decisions about adopting technology.
Scottish hospitality at risk as 10,000 businesses await rates relief decision
A looming crisis confronts the Scottish hospitality sector as approximately 10,000 businesses teeter on the brink of insolvency, awaiting crucial rates relief support. The Fraser of Allander Institute’s recent analysis reveals a critical juncture for these establishments, urging swift action from the Scottish Government to provide relief akin to measures implemented in England. The businesses in question find themselves ineligible for the small business bonus scheme, leaving them vulnerable during one of the most economically challenging periods in recent history. If the Scottish Government opts against introducing a business rates relief scheme, these enterprises could face dire consequences, impacting not only their survival but also the broader economic landscape of Scotland.