Economic Research alert - August 2023

This paper provides an overview of research in the public domain over the last month with a focus on jobs, innovation, international and investment.

The methodology consisted of desk research.

Jobs - The latest Quarterly Recruitment Outlook (QRO), a survey of 4,800 UK firms of all sectors and sizes by the British Chambers of Commerce (BCC) reveals there is still no easing in the record high difficulties in finding staff. Offering flexible working for older people could help Scottish employers to tackle skills shortages suggests a report from Flexibility Works. Innovation - New analysis from the CBI has shown that making the most of 27 green growth ‘prizes’ could deliver a £37-57 billion boost to GDP by 2030, equivalent to between 1.6% and 2.4% of GDP. ‘Prizes’ fell within seven key areas projected to offer the biggest green opportunities: electric vehicles, low carbon power, heating and insulation, green services, hydrogen, carbon capture and storage (CCUS), and biofuels. International – The Institute of Directors (IoD) has published research which shows 35% of UK importers feel impacted by geopolitical pressures, particularly in relation to China, and are subsequently examining their supply chains. 1026 responses were received for the survey which was conducted between 12 – 28 May 2023. Businesses are finding the trading relationship with the EU as challenging as they did a year ago, according to data from the IoD. Investment – The cost of living crisis is the current top risk for Scottish businesses followed by employee retention and cash-flow finds the Gallagher Business Risk Index. £3.2 billion was added by Scottish businesses to the UK economy by the aerospace, defence, security and space sectors, according to the latest figures from ADS Group.

The report makes no recommendations.