Economic Research alert – October 2022

This paper provides an overview of research in the public domain with a focus on the priorities from the Scottish Enterprise Business Plan (jobs, net zero, place) – there is also a section on general business surveys.

The methodology consisted of desk research.

Jobs – The renewable energy sector supported over £5.6 billion of output, over £2.5 billion of GVA and over 27,000 FTE jobs across the Scottish economy suggests the Fraser of Allander Institute. Demand for technology professionals in Scotland increased by more than 200% over the last 12 months, according to the latest UK Tech Talent Tracker from Accenture. Net zero - One in seven drivers want an electric vehicle (EV) as their next car and one in three want a hybrid model but the cost of living crisis is delaying the move. The future holds no “single solution” to meet the net-zero energy demand and the industry needs to be more “entrepreneurial” to capture the opportunity suggests a new report from the Net Zero Technology Centre. Place – 74% of businesses in the Northeast plan to increase prices in the next three months. This is 12% ahead of the rest of the UK (62%), and is being driven by high energy bills, increasing labour costs and fuel. A study by Virgin Money has ranked Edinburgh and Aberdeen amongst the best UK cites for start-ups. Other business - A survey of more than 2,200 UK SME exporters has revealed a worrying decline in export growth following five consecutive quarters of flat activity. More SME exporters are now reporting falling overseas sales (28%) than are reporting an increase (22%). 95% of businesses that took part in the latest South of Scotland Business panel said that rising costs were impacting their operations.

The report makes no recommendations.