Economic Research alert - January 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 new report suggests that an extra 19,550 construction workers will need to be recruited in Scotland from 2023 to 2027 to meet demand. The end of the free movement has led to a shortfall of around 330,000 workers in Britain. Most are in lower-skilled sectors. Innovation - The Circularity Gap Report Scotland suggests that a circular economy can cut Scottish consumption almost in half, bringing it closer to a sustainable level. International - Only 26% of SME exporters saw increased export sales suggests the BCC’s quarterly Trade Confidence Outlook for Q4 2022. The top drivers of export growth in 2023 are expected to be growing demand in key markets (cited by 25% of executives surveyed) and the expansion of operations into new markets (20%) suggests the Trade in Transition report. Investment - The Scottish Chamber of Commerce finds cost pressures and declining business confidence is highlighted by businesses in their latest survey (Q4, 2022). The Quarterly Economic Survey from the Aberdeen & Grampian Chamber of Commerce shows that prices are rising faster in the region than other parts of the UK for the second quarter in a row due to rising labour costs.

The report makes no recommendations.