Business News Round Up (22/07/2022)
Fall in vacancies indicates a difficult recovery for Scotland’s economy
The number of jobs in Scotland decreased significantly by 45% in June compared to March with the dip being felt across all key sectors, threatening to hinder Scotland’s economic bounce back. That’s according to recent research from the Association of Professional Staffing Companies (APSCo). The data, provided by the world’s largest network of job boards, Broadbean Technology, revealed that IT continued to be the biggest creator of job opportunities in Scotland, accounting for 13% of the total (unchanged month-on-month). However, its 5,500 jobs tally was less than half March’s figure. Engineering took the second spot accounting for 11% of Scotland’s vacancies in June (up two percentage points on March’s figures) with building & construction dropping one percentage point to 9.4%. Average permanent salaries rose in most industry sectors to help meet the rising cost of living. Of the top sectors for job numbers, medical & nursing paid the highest salaries, at over £48k, rising slightly from March. Interestingly, oil & gas, such an important sector for the Scottish economy, came second at just under £47k. Notably, salaries in the IT remit have risen to almost £45k, as recruiters try to attract new talent to this fast-growth sector. Conversely, call centre & customer service and admin & secretarial jobs had the lowest salaries, both paying under £23k. Despite some of these promisingly high salaries, it looks like pay increases will struggle to mitigate inflation, which hit a record 40-year high in May. Elsewhere, application per vacancy (APV) numbers continue to drop. Call centre & customer service roles did, however, record an average APV of 34, up by two month-on-month. Whereas, IT jobs received only 14 applications, which is indicative of the sector’s well-documented skills short market.
Region taps into £475m of financial support through Recovery Loan Scheme
More than 2,100 North West firms have used the Government’s Recovery Loan Scheme, new figures from The British Business Bank have revealed. Through accredited lenders, more than £457m has been offered to smaller businesses in the region as they steer a path towards a sustainable recovery. Of the £457.2m of total funding offered through 2,176 facilities, £387.4m has been drawn down through 1,993 facilities. Total funding offered from the scheme represents 10% of the national total, broadly in line with the relative size of the region’s business population. A total of £4.51bn of lending has been offered through more than 20,643 facilities across the UK – £3.83bn has been drawn down through 18,338 facilities. The Recovery Loan Scheme launched in April 2021 and was originally scheduled to run until December 31, 2021. At Autumn Budget 2021, the Government extended the scheme by six months to June 30, 2022 and made some adjustments to its terms. The Government provides a guarantee of 80% for loans made before January 1, 2022, and 70% for loans after that date. The borrower remains 100% liable for the debt. And the Government has further announced that there will be a successor scheme to RLS, which will open for applications in August 2022.
UK retail sales slip in June as consumers struggle with inflation
British retail sales edged down in June as drivers cut back on record-priced fuel, with consumers reducing shopping less than expected, data showed, though the trend remained weak as households struggle with surging inflation. Retail sales volumes fell by a smaller-than-expected 0.1% from May, the Office for National Statistics said on Friday. Economists polled by Reuters had expected a 0.3% monthly fall. “After taking account of rising prices, retail sales fell slightly in June and although they remain above their pre-pandemic level, the broader trend is one of decline,” Heather Bovill, an ONS statistician, said. In the April-June period sales volumes were down by 1.2%. Excluding automotive fuel, volumes in June rose by 0.4% on the month, compared with a poll forecast for a fall of 0.4%. Automotive fuel sales volumes fell by 4.3%, the biggest drop since October last year when a shortage of truck drivers triggered a wave of panic buying of petrol and diesel. A monthly fall in May was estimated to have been more severe than originally thought, showing a drop of 0.8% from April compared with an initially reported decline of 0.5%. Britain’s economy is feeling the strain of inflation, which is on course to hit double digits, driven in large part by the sky-rocketing fuel prices.
https://www.reuters.com/business/retail-consumer/uk-retail-sales-fall-by-01-june-2022-07-22/
£7m will help people in Greater Manchester fast-track to job interviews
Greater Manchester Combined Authority (GMCA) has secured £7m from the Department of Education to provide fully-funded training to people living and working in the city-region, aiming to support them into employment after a career break. Training will be delivered as part of Greater Manchester’s Skills Bootcamps – part of the Government’s Lifetime Skills Guarantee – which helps people to get onto the career ladder, transition back into work after a break or access progression opportunities. The bootcamps will support people aged 19 and over from priority groups with flexible courses of up to 16 weeks, while helping employers to fill skills shortages they have identified. In 2018, GMCA initially worked with the Department for Media, Culture and Sport to test Skills Bootcamps through a pilot scheme called the ‘Fast Track Digital Workforce Fund’, which focused particularly on providing accessible routes into digital employment. As a result of the pilot’s success, whereby 53% of learners were successfully supported into employment, the Department for Education is now rolling out and scaling up more varied Skills Bootcamps nationally. The funding GMCA has been awarded will go towards offering training in the city-region until 2023 across range of industries such as construction, manufacturing, digital, the green economy and others.