Economic Research alert - July 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 - Research from City & Guilds and Engineering UK shows that less than 46% of energy workers feel that they personally have the skills required to support a zero-carbon energy system by 2035. The good news is that these employees are open to the transition. Recent research from Scottish Power identifies a trend of ‘boomerang employees’ returning to previous jobs as the UK labour market stabilises with 47% of people considering returning to a past role. Innovation - Failure to communicate sustainability successes could be costing major companies substantially according to new findings from Brand Finance’s ‘Sustainability Perceptions Index’. Edinburgh has been named the most ‘AI ready’ city in the UK after London, according to the SAS AI Cities Index. International - Department for Business and Trade (DBT) statistics show in Scotland 130 FDI projects have been initiated in 2022/23 - up from 119 in 2021/22. This will create 3,428 jobs. A majority of small international traders do not have the dedicated manpower required to handle complex customs paperwork and need to turn to high-cost intermediaries, according to new research by the Federation of Small Businesses (FSB). Investment - The latest Understanding Business survey from Diffley Partners finds that Scottish businesses are struggling with rising costs and recruitment difficulties. The Economic Impact of Edinburgh’s Festivals report shows that economic impact increased in Edinburgh from £280m in 2015 to £407m in 2022, and in Scotland from £313m to £367m.

The report makes no recommendations.