Economic Research alert – February 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 – A survey by the British Chambers of Commerce (BCC) reveals firms are facing the highest level of recruitment difficulties on record. In Q4 over 80% of firms reported recruitment difficulties, up from 76% in Q3. Older workers are more likely to leave the workforce than change jobs suggests research from the OECD. Innovation - Research from the Energy Intelligence Unit suggests there are almost 20,000 businesses currently within the net zero economy which are contributing £71 billion (3.7%) in GVA to the UK economy. 840,000 (3.2%) jobs are supported by businesses in the net zero economy, with an average wage of £42,600 compared to the £33,400 national average. International - Scotland has achieved its highest ever reported score in the National Brands Index 2022. Scotland’s overall score is 65.3 out of 100. Scotland’s natural beauty was ranked 7th out of 60, while tourism ranked 12th out of 60. From 2015-2022 the cost of construction materials in the UK increased by around 60% compared to 35% in the EU over the same period suggests new analysis. Investment - Social Enterprises are critical to the rural economy contributing £197m in the Highland and Islands suggests a new report. The Scottish Tourism Index (Q1 2023) suggests that 2023 could be a challenging year for domestic tourism due to the cost of living crisis.

The report makes no recommendations.