Business News Round Up (25/04/2022)
Covid has not fundamentally changed the labour market report finds
There are around 20% more job vacancies than there were pre-pandemic, and that seems to have been stable for 6 months or so now. But new analysis from researchers at the IFS shows that the overall amount of change in the occupational mix of vacancies is no greater than would be expected over a ‘normal’ two-year period. These are among the findings of new IFS research, published today and funded by the Economic and Social Research Council. The research uses data on workers and jobseekers from the Labour Force Survey, and online job vacancy data from Adzuna, up to and including February 2022. Despite all the turbulence of the past two years the overall mix of vacancies today is remarkably similar to 2019 and has changed no more since then than between 2017 and 2019.
Scottish Government commits £45m to boost national tech credentials
Scottish Government finance secretary Kate Forbes has confirmed that £45m of funding has been made available to take forward plans drawn up to bolster Scotland’s national technology credentials as a country. Two years ago, Forbes asked former Skyscanner executive Mark Logan to review how Scotland’s technology sector could contribute to the country’s economic recovery in the wake of the Covid-19 pandemic. He produced a report that made a number of key recommendations focused on creating a technology ecosystem that “supports and nurtures technology businesses in Scotland, from the early start-up phase through to fully scaled maturity”. In a parliamentary statement this week, Forbes said that in addition to launching a £1m Tech Ecosystem Fund last year and investing in equipment for schools, the government is also close to awarding the contract for the creation of five Tech Scaler hubs. The hubs, which were included in this year’s Programme for Government, will be located around the country and will aim to help a total of around 300 start-ups get off the ground.
Small businesses suffer unprecedented cost assault in sign of more economic woe
Swelling costs are eating away at small businesses’ margins in a sign that a key engine of the UK’s recovery is beginning to stall, reveals fresh research published today. Nearly nine in 10 small businesses have experienced an uptick in their operating costs, squeezing their room to combat what is expected to be a weaker than expected year of economic growth, according to the Federation of Small Businesses (FSB). Rising fuel and energy costs, primarily the result of Russia’s invasion of Ukraine and tight oil and gas supplies, are the main culprits hitting small firms’ bottom lines. The fresh research illustrates that the current inflation crunch ensnaring the UK economy is generating both a “cost of doing business” and cost of living crisis, according to the FSB.
Aberdeen to host second round of transatlantic trade talks
Aberdeen will play host to another round of talks aimed at boosting the UK’s £200bn trade partnership with the United States. During the second transatlantic dialog this week, the UK Government said talks will focus on “priority areas” including digital and innovation, green trade, supporting small and medium enterprises, and supply chain resilience. International Trade Secretary Anne-Marie Trevelyan said: “This dialogue gives us a platform to explore more modern, digital ways of trading. “It will identify and resolve barriers to trade to make it cheaper and easier for businesses in Scotland and throughout the UK to do business with our US friends.” With progress stalled on a UK-US free trade deal, the government has switched its focus to making agreements with individual states in a bid to assist UK businesses. Britain is expected to sign its first economic pacts with American states next month and secure an arrangement with Texas by October, Trade Minister Penny Mordaunt told the House of Commons on Thursday. “The first eight we have in the pipeline will be equivalent to 20% of the United States economy,” she told MPs. Ahead of the US-UK talks, which begin on Monday, the Department for International Trade said the discussions will pave the way for further engagement with the US, including ongoing work at a state-level and removing barriers to trade. In Aberdeen, the International Trade Secretary will host her US counterpart Ambassador Katherine Tai, with leaders from Scottish and UK governments, as well as trade unions and business, set to attend.
https://www.insider.co.uk/news/aberdeen-host-second-round-transatlantic-26788616