Tag: employment

Royal Bank of Scotland: Downturn deepens amid falling demand

  • Business Activity Index falls to 45.8 in October from 48.0 in September
  • Contraction in new orders quickens
  • Growth in employment further weakens

The contraction across Scotland’s private sector firms deepened during October, according to the latest Royal Bank of Scotland PMI® data. Adjusted for seasonality, the Business Activity Index posted below the neutral 50.0 threshold for the third month running, at 45.8, indicating a sharp decrease overall.

Inflows of new business also went into further decline, the latest downturn being the most severe in 20 months. To further add weakness across the sector, inflationary pressures reaccelerated from September’s recent low, as service providers reported quicker upturns in input costs and charges during October.

The gloomy performance resulted to the softest intake of workers in 18 months, with goods producers reporting their first reduction in employment since January 2021.

New business received at Scottish private sector firms fell sharply during October. The rate of decrease quickened from September to the fastest in the current fourth-month sequence of reduction.

Of the two sub-sectors, manufacturing firms reported the steeper downturn. Companies noted that looming recession, economic uncertainty and the cost of living crisis weighed on client activity.

The downturn in incoming new business across Scotland outpaced the UK-wide average.

Output expectations for the year ahead across private sector firms in Scotland strengthened in the three months to October. The increase in confidence was underpinned on planned expansions and investment, with firms also hopeful of future economic stability. That said, sentiment was relatively muted in context of historical data.

Business confidence across Scotland was broadly in line with that recorded for the UK as a whole.

Employment across the Scottish private sector expanded for the nineteenth month running in October. However, amid a cooldown in hiring activity at service providers, with goods producers reporting their first contraction since January 2021, the overall rate of growth ticked down to the joint-lowest in the aforementioned series.

The rate of job creation across Scotland remained softer than that seen at the UK level, which similarly also slowed in October.

October’s survey showed a sustained fall in levels of outstanding business across Scotland’s private sector. The respective seasonally adjusted index posted below the neutral 50 threshold for the fifth consecutive month, the latest reading signalling the fastest depletion in work outstanding since January 2021. As per surveyed businesses, declines in new orders allowed firms to work through previous backlogs.

The rate of contraction in Scotland was the third-fastest across the UK, ahead of Northern Ireland and Wales.

October data signalled a robust rise in input costs across Scotland’s private sector, thereby extending the run of inflation to 29 months. Adjusted for seasonality, the latest reading increased from September’s 13-month low as a result of a reacceleration in input price inflation reported at service firms. The uptick in average costs was attributed to higher wages and utilities, cost of living crisis and general inflation adding strain on costs.

Despite being severe, the pace of input price inflation was however, softer than the UK average.

In line with the upturn in average cost burdens, charge levied by Scottish private sector firms also inclined from September’s recent low at a quickened rate during October.

The rate of charge inflation across Scotland posted weaker than the UK-wide average which slowed during October.

Source: Royal Bank of Scotland, S&P Global.

Judith Cruickshank, Chair, Scotland Board, Royal Bank of Scotland, commented: “The Scottish private sector reported a third month of contraction during October. The downturn in activity quickened on the month, as stubbornly high inflationary pressures, the ongoing cost of living crisis and a threat of recession deterred growth. New orders received at firms also fell further.

“Employment trends across the sector indicated a slowdown in hiring activity over the recent months. The latest upturn was the joint-softest in the current 19-month sequence of expansion. At the same time, the level of outstanding business also fell at a much sharper rate. The data thus suggesting the further weakness in the labour market will not be surprising.

“As we proceed into the final quarter of the year, market conditions are set to become more challenging. The aggressive interest rate hikes, the decline in the value of sterling against the dollar and the rebound in post-COVID demand phasing out, all amidst the ongoing cost of living and energy crises, all point to an extremely difficult period for Scotland.”  

Royal Bank of Scotland: October report on jobs

Renewed downturn in permanent placements during October

  • Permanent placements fall amid growing economic uncertainty
  • Temp billings decline for first time in 26 months
  • Pay pressures soften, but remain strong overall

Hiring activity across Scotland fell into decline during October, with both permanent staff appointments and temporary billings contracting, according to the latest Royal Bank of Scotland Report on Jobs survey.

Permanent placements have now fallen in two of the past three months, while the downturn in temp billings was the first seen since August 2020. Moreover, the rates of contraction were strong overall amid reports of growing economic uncertainty, softening demand conditions and the deepening cost of living crisis.

October data also revealed further increases in starting salaries and temp wages. However, rates of inflation continued to ease, signalling a mild waning of pressure on pay.

Permanent staff placements fall solidly

October data highlighted a fall in permanent staff placements across Scotland. After a month of growth in September, the respective seasonally adjusted index reverted below the neutral 50.0 threshold to signal the second reduction in three months.

The rate of contraction was the fastest seen in nearly two years and solid, with recruiters often linking the fall to growing economic uncertainty and the cost of living crisis.

At the UK level, a fall in permanent staff hires was also noted, with the rate of decline similar to that seen in Scotland.

Scottish recruitment consultancies signalled a reduction in temp billings during October, thereby ending a 25-month run of expansion. The rate of contraction was the quickest seen since July 2020 during the initial wave of the pandemic and strong overall. According to panellists, the latest fall was driven by reduced activity at clients. 

Across the UK as a whole, temp billings were broadly stagnant after rising in each of the prior 26 months.

Downturn in permanent staff supply fastest in three months

Recruiters across Scotland noted a twenty-first successive monthly fall in permanent candidate availability during October. The pace of decline quickened on the month and was marked overall. Panellists generally linked the latest downturn to skill shortages and increased hesitancy to seek out new roles due to rising economic uncertainty.

The pace of reduction across Scotland was more rapid than that recorded for the UK as a whole.

The supply of temp labour across Scotland fell again during October. Despite being severe overall, the rate of decline was the second-slowest in seven months (after September). Recruiters highlighted a lack of European workers and ongoing skill shortages as factors constraining supply.

As has been the case for the last seven months, the rate of contraction in temp staff availability in Scotland was sharper than that seen at the UK level.

Starting salary inflation softens further in October

Latest survey data indicated that average starting salaries for permanent staff in Scotland increased at the slowest pace since June 2021 during October. That said, the pace of wage inflation remained elevated in comparison to the historical average. According to anecdotal evidence, skill and candidate shortages continued to drive up rates of pay.

Data for the UK as a whole also signalled a softer rise in starting salaries during October. Moreover, the pace of inflation was softer than that seen for Scotland for the first time in four months.

As has been the case for the past 23 months, temp wages rose across Scotland during October. While the respective seasonally adjusted index hit an 18-month low, it signalled a sharp rise overall. Greater competition for scarce candidates was cited as a key driver of the latest increase in temp pay.

At the national level, wages also increased at a much slower rate during October. However, the rate of inflation was quicker than that registered in Scotland.

Demand for permanent staff expands at slowest pace in 20 months

Demand for permanent staff grew sharply during October, thereby extending the current period of expansion to 21 months. However, the respective seasonally adjusted index fell for the sixth month running, with the latest reading edging down to a 20-month low.

Across the monitored job categories, IT & Computing registered the steepest rate of expansion, followed by Nursing/Medical/Care.

Recruiters across Scotland noted a twenty-fifth successive monthly rise in temp staff demand during October. While the rate of growth was the weakest since February 2021, it was quicker than that seen across the UK as a whole.

At the sector level, IT & Computing saw the quickest growth in short-term vacancies, followed by Accounts & Financial.

Sebastian Burnside, Chief Economist at Royal Bank of Scotland, commented: “Labour market conditions across Scotland deteriorated in October, as for the first time since August 2020, both permanent placements and temporary billings contracted.

“At the same time, rates of vacancy growth for both permanent and short-term staff continued to ease. Candidate and skill shortages meanwhile stretched the supply of labour thin, with recruiters also noting that increased economic uncertainty had impacted candidate numbers. Though it does seem that market imbalances are becoming less pronounced, the effect on pay remains strong.

“The data therefore suggest that growing uncertainty about the economy and the cost of living crisis are already affecting the labour market, and could weigh further on hiring decisions for the remainder of the final quarter of 2022.”

A Career in Care: Edinburgh College launches new free course

STEP INTO CARE with LOTHIAN CARE ACADEMY

NHS Lothian has partnered up to support the launch of a new Edinburgh College course designed to introduce students to a career in care.

The free course, which is 10 weeks long leads to a guaranteed job interview for participants with a social care provider, opening the doors to potential future employment.

NHS Lothian, working in partnership with Lothian’s four Health and Social Care Partnerships has helped to develop the Lothian Care Academy (LCA) to support education, training and recruitment of health and social care staff.

The step into care course is an initiative championed by the LCA designed to support our the current health and social workforce, while attracting new talent to the profession.

The course itself is aimed at those who enjoy working with people, are compassionate, have a sense of fun and are seeking a new rewarding career they perhaps thought they never had the qualifications to start.

Mhairi Mackay, Senior Project Manager for Lothian Care Academy, NHS Lothian said: “The rationale for this course was to look at new ways of recruiting into social care and to provide people with experience of the job.

“We have adapted the SSSC ‘Introduction to Social Care’ course to include workshops on personal care, infection control and communication so people can be best prepared for what a career in social care might be like. We’re also guaranteeing interviews for candidates who complete the course, so it is a ‘one stop shop’ so to speak.

“The interviews could take successful candidates into a career in a care home or in a care at home service that helps people to keep their independence and stay in their own home.”

Alison Payne, Manager of Erskine Care Home, Edinburgh said: “The course is very important in opening up the option of working in care to a whole new potential workforce.

“I am hopeful that people who have considered working in care, but felt they didn’t have the skills or necessary experience will see this course as a great opportunity and even a steppingstone into a whole new career.

“One of the biggest issues facing the care sector at the moment is recruitment, in particular for care homes and care at home services.

“I think as a care home it was important for us to be involved in this project so that we can give a real insight into what care homes are really like to work in. I would also love people to see the real care home experience and the positive impact this has for residents and their relatives.”

It’s only by working in partnership with care services and Edinburgh College that’s allowed the course to come into fruition.

Commenting on the partnership Andrew Clark, Skills Boost Leader, Edinburgh College said: “One of our key aims at Edinburgh College is to improve employability within our local community.

“This partnership is really a win-win situation as it provides a pathway for people wishing to work in the care industry and gives much needed assistance to the people who require care.”

To find out more about the course, please visit:

https://www.edinburghcollege.ac.uk/courses/browse/step-into-care-lothian-care-academy-ypgnttf-hw1icscz22

Enterprise Rent-A-Car looking for nearly 2,000 employees across UK

246 jobs in Scotland and Northern Ireland including Glasgow and Edinburgh

The world’s largest vehicle rental mobility company is launching one of the UK’s biggest graduate recruitment campaigns this year.

Enterprise Rent-A-Car will recruit 1,454 graduates across its regional network of 450+ rental branches located all over the UK over the next 12 months. It is also recruiting 450 undergraduates for 12-month industrial placements in retail, HR, revenue management, legal and marketing teams.

The campaign launches to support growing demand for vehicle rental in towns and communities across the UK looking for low-cost, low-emission and convenient motoring.

People can apply from any university, degree and attainment level. Enterprise recruits based on potential and is looking for people who can demonstrate customer service, teamwork and leadership skills.

Employees on placements can return to Enterprise after graduation and enter straight into a management role, having completed the training programme on placement. Management Trainees could become a Branch Manager within just two years.

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With more than 450 branches across the UK, within 10 miles of 93.5% of the UK population, applicants can choose to start their Enterprise career anywhere across the country, both in cities and in smaller, more rural areas.

Graduates who join the company’s award-winning Management Training Programme rapidly gain valuable experience across all areas of business management. This includes customer service, operations, sales, marketing and finance, in an entrepreneurial culture that empowers trainees by giving them real responsibility early in their career. 

Ashley Hever, Enterprise Rent-A-Car’s Talent Acquisition Director (Eh? – Ed.), explains: “The Management Training Programme is the starting point to long term careers at Enterprise that can take people to the very top of the business. Most of our country heads started their career as a Management Trainee, and so did I. Once you’re on board, the sky’s the limit.

“This programme is an outstanding opportunity to develop the real-world skills and experience that this year’s graduates may feel they need, as their university years included long periods of remote learning. If you’ve got a degree and the entrepreneurial drive to take responsibility and be a leader, come and say hello to us at one of our events.” 

With branches throughout every region of the UK, Enterprise Rent-A-Car’s graduate Management Trainees can choose to work close to home or head off to pastures new, as they are not tied to expensive cities or obliged to move far away.

This year’s recruits will join Enterprise at a time when transport strategy is in the spotlight, providing exciting opportunities to shape the future of mobility. Businesses and public sector bodies are looking to broaden their travel options to reduce emissions and improve efficiency.

Enterprise is working on exciting solutions and expanding into new markets to meet these opportunities, including Mobility-As-A-Service (MaaS), providing a key link in the connected travel chain and encouraging people to consider shared alternatives to car ownership. 

Enterprise becomes part of the neighbourhoods in which it operates by recruiting locally, enabling a deeper understanding of local customers’ needs and strengthening its ties within the local community. 

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Enterprise Rent-A-Car is an inclusive employer and has long been recognised for recruiting a diverse and equitable workforce. It has been a Times Top 50 Employer for Women for 17 years in a row. Enterprise is actively involved in local and national diversity recruiting efforts, partnering with Enactus, The Automotive 30% Club, BITC and Stonewall.

For more information or to apply for the Enterprise Management Training Programme, visit: https://careers.enterprise.co.uk/graduate-management-trainee-jobs to find out more.

Heriot-Watt ranks as Scotland’s best university for landing a Big Four Accounting job

These Scottish universities give you the best chance of working for a Big Four Accounting Firm

  • Heriot-Watt University ranks as the best Scottish university for landing a job at a Big Four Accountancy Firm, with 991 graduates working for PwC, Deloitte, EY or KPMG.
  • University of St. Andrews and The University of Edinburgh rank second and third respectively in Scotland.
  • London School of Economics and Political Science (LSE) ranks as the best university in the UK for landing a Big Four job.

Heriot-Watt University ranks as the best Scottish university for landing a role at a Big Four Accounting Firm (PwC, Deloitte, EY and KPMG) according to a new analysis of LinkedIn data.

As undergraduates return for their final year of university this Autumn, many will have their mind set on a career with some of the UK’s largest and most reputable graduate employers.

However, as places for these graduate roles become more competitive, many will be wondering how their university stacks up in terms of career prospects.

Online trading platform and broker CMC Markets, analysed LinkedIn data for the Big Four Accounting Firms, PricewaterhouseCoopers (PwC), Deloitte, Ernst & Young (EY) and KPMG, to see where their current employees most commonly attended university.

The analysis looked at the UK’s top 60 universities, including all 24 that are members of the Russell Group, to see which universities have the most graduates working for a Big Four Accounting Firm. The figures were also calculated as a proportion of each university’s enrolment size, based on student enrolment for the 2020/21 academic year according to the Higher Education Statistics Agency.

Scotland Universities ranked for Big Four Accounting Jobs

1. Heriot-Watt University – 991 graduates (8.8% of enrolment size)

Heriot-Watt University ranks as the best Scottish university to attend if you want to pursue a career at the Big Four, with a total of 991 university graduates currently employed across these firms. When accounting for the number of students enrolled in a typical academic year at Heriot-Watt, this works out at 8.8% of the total enrolment size placing it top of any Scottish university in the list and 10th overall in the UK.

2. University of St. Andrews – 927 graduates (8.1% of enrolment size)

University of St. Andrews ranks the second-best Scottish university to attend if you want to pursue a career at the Big Four. The university has a total of 927 graduates currently employed across these firms, which works out at 8.1% of the total enrolment size. St. Andrews ranks 12th overall in the UK in terms of graduates in Big Four Accounting roles.

3. The University of Edinburgh – 1,983 graduates (5.2% of enrolment size)

The University of Edinburgh ranks as Scotland’s third best university to attend if you want to pursue a career at the Big Four. The university has a larger total of 1,983 graduates currently employed across these firms, which works out at 5.2% of the total enrolment size. Edinburgh ranks 33rd overall in the UK in terms of graduates in Big Four Accounting roles.

4. University of Strathclyde – 1,202 graduates (4.9% of enrolment size)

University of Strathclyde ranks as Scotland’s fourth best university to attend if you want to pursue a career at the Big Four. The university has a total of 1,202 graduates currently employed across these firms, working out at 4.9% of the total enrolment size. Strathclyde ranks three spots behind at 36th overall in the UK.

5. University of Aberdeen – 580 graduates (3.6% of enrolment size)

University of Aberdeen ranks as Scotland’s fifth best university to attend if you want to pursue a career at the Big Four. The university has a total of 580 graduates currently employed across these firms, working out at 3.6% of the total enrolment size. Aberdeen ranks 40th overall in the UK.

6. University of Glasgow – 1,339 graduates (3.6% of enrolment size)

University of Glasgow ranks as Scotland’s sixth best university to attend if you want to pursue a career at the Big Four. The university has a total of 1,339 graduates currently employed across these firms, also working out at 3.6% of the total enrolment size. Glasgow ranks 41st overall in the UK.

7. University of Stirling – 293 graduates (2.0% of enrolment size)

University of Stirling ranks as Scotland’s seventh best university to attend if you want to pursue a career at the Big Four. The university has a total of 293 graduates currently employed across these firms, working out at 2.0% of the total enrolment size. Stirling ranks 51st overall in the UK.

8. University of Dundee – 279 graduates (1.7% of enrolment size)

University of Dundee ranks as Scotland’s eight best university to attend if you want to pursue a career at the Big Four. The university has a total of 279 graduates currently employed across these firms, working out at 1.7% of the total enrolment size. Dundee ranks 53rd overall in the UK, nearing the bottom of the list.

Top UK Universities for Big Four Accounting Jobs

1. London School of Economics and Political Science (LSE) – 5,776 graduates (42.9% of enrolment size)

2. University of Cambridge – 3,401 graduates (15.4% of enrolment size)

3. Oxford Brookes University – 2,355 graduates (13.2% of enrolment size)

4. Durham University – 2,702 graduates (13.1% of enrolment size)

5. University of Lancaster – 1,732 graduates (9.9% of enrolment size)

University ranking by percentage of alumni who list themselves on LinkedIn as working for a Big Four firm

RankUK UniversityPwC EmployeesDeloitte EmployeesEY EmployeesKPMG EmployeesTotalTotal student enrolment (for the 20/21 academic year)Number of alumni working at The Big Four as a percentage of current enrolment size
1.London School of Economics and Political Science (LSE)1,4941,7981,4771,0075,77613,45542.9%
2.University of Cambridge8931,0578446073,40122,15515.4%
3.Oxford Brookes University5635598094242,35517,79513.2%
4.Durham University7547945885662,70220,64513.1%
5.University of Lancaster4664354973341,73217,4709.9%
6.University of Warwick7618106145272,71228,1109.6%
7.University of Oxford6618565465042,56727,1509.5%
8.Queen’s University Belfast1,1494884162862,33925,3659.2%
9.University of Bath4805004063221,70818,5559.2%
10.Heriot-Watt University25527327019399111,2008.8%
11.University of Nottingham9198496256503,04335,7858.5%
12.University of St. Andrews28327620216692711,4858.1%
13.Imperial College London4575453713321,70521,3708.0%
14.University of Bristol7176555154762,36329,7857.9%
15.The University of Manchester9871,0017707293,48744,6357.8%
16.University of Birmingham8587965766672,89737,7507.7%
17.SOAS University of London116138951014505,8657.7%
18.University of Southampton4235293373081,59721,3957.5%
19.University of Leeds8817175685442,71036,8407.4%
20.Loughborough University4113792902601,34018,3357.3%
21.University of Exeter6206324674722,19130,2507.2%
22.Queen Mary University of London4155263763481,66523,8707.0%
23.University College London (UCL)8619997035443,10745,7156.8%
24.Newcastle University6604763663111,81327,7756.5%
25.University of Leicester2723252341811,01216,1006.3%
26.Royal Holloway, University of London21023716512773912,2956.0%
27.King’s College London5766995544702,29938,4456.0%
28.Ulster University

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Bank of Scotland Business Barometer: Dip in Scottish business confidence

Bank of Scotland’s Business Barometer for October 2022 shows:  

  • Business confidence in Scotland fell 10 points during the last month to 5%
  • Country’s businesses identify top growth opportunities as evolving their offering (33%), investing in their teams (29%) and entering new markets (27%)
  • Overall UK business confidence fell one point during the last month to 15%, with five out of 11 nations and regions reporting a higher reading than September

Business confidence in Scotland fell 10 points during October to 5%, according to the latest Business Barometer from Bank of Scotland Commercial Banking – conducted between 3rd-17th October.

Companies in Scotland reported lower confidence in their own business prospects month-on-month, down 11 points at 22%.  When taken alongside their optimism in the economy, down 10 points to -14%, this gives a headline confidence reading of 5%. 

Scottish businesses identified their top target areas for growth in the next six months as evolving their offering (33%), investing in their teams (29%) and entering new markets (27%).

The Business Barometer, which questions 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide.

A net balance of 16% of Scottish businesses expect to reduce staff levels over the next year, down two points on last month.

Overall UK business confidence fell one point during October to 15%, in line with the average over the last three months. Firms’ outlook on their future trading prospects was up two points to 27%, and a net balance of 21% are planning to create new jobs, up four points on last month. However, businesses optimism in the wider economy dropped three points to 2%.

Five UK regions and nations recorded a month-on-month increase in optimism in October. Of those, London (up 16 points to 49%), the North West (up 14 points to 28%) and Wales (up nine points to 5%) saw the largest monthly increases, with London remaining the most optimistic region overall.

Chris Lawrie, area director for Scotland at Bank of Scotland, said: “Ongoing economic challenges, not least the cost of doing business, is hitting firms and we’re seeing this reflected in a less optimistic outlook.

“As we approach the busiest trading period of the year for many, businesses across the country need to prioritise maintaining a steady cashflow to remain resilient and be well-equipped for any opportunities to grow.

“After all, Christmas can be a frenetic and expensive time for businesses and their customers, so firms need to have a plan in place to manage this, as well as having some money aside to cover unexpected costs.

“We’ll remain by the side of Scottish businesses to help them continue to navigate the challenging market conditions and push for growth.”  

Business confidence in the manufacturing sector fell for the fifth month in a row, to 13%, down 1 percentage point, the lowest confidence level since February 2021.

Confidence in the retail sector declined by 6 percentage points to 9%, while confidence in the services sector also fell to 16%, both the lowest levels since early 2021.

However, the construction sector saw a 10 percentage point rise to 20%, although this level still remains weaker than in the first half of the year.

Paul Gordon, Managing Director for SME and Mid Corporates, Lloyds Bank Commercial Banking, said: “While confidence has marginally decreased this month, this also comes at a time of great economic uncertainty. The fact that it has only fallen by 1% suggests that businesses are showing resilience.

“As we head into the winter months and price pressures continue, energy price increases will start to bite and we are seeing continued pressure on pay expectations.

“Businesses need to keep a watchful eye on costs to ensure they are in the best possible position to face any future headwinds. For businesses that may be struggling, we encourage them to reach out to their networks for support. At Lloyds Bank we remain by the side of businesses to help navigate these challenging times.”  

Hann-Ju Ho, senior economist for Lloyds Bank Commercial Banking, said: “While business confidence has marginally fallen this month, along with a drop in forward looking economic optimism, it is encouraging to see businesses still looking to increase their headcounts.

“However, cost pressures remain evident as businesses raise prices to protect their margins and wage pressure continue to be impactful. Given the recent turbulence in financial markets, it will be interesting to see how this will affect business confidence.”

Record number of Scots are being paid the real Living Wage

A Fair Work approach to the cost of living crisis

A record proportion of employees in Scotland are being paid the real Living Wage (rLW) or more, new figures have revealed.

The Office for National Statistics’ Annual Survey of Hours and Earnings shows 91% of employees aged 18 and over earned at least the rLW in 2022, an increase from 85.5% in 2021 and the highest proportion since the rLW series began in 2012.

In comparison, 87.5% of employees aged 18 and over in England are paid the rLW or more, 88.2% in Wales and 85.4% in Northern Ireland.

The ONS survey also confirms that the Gender Pay Gap is lower in Scotland than across the UK as a whole. For full-time employees the gap is 3.7% compared with the UK figure of  8.3%.

The Scottish Government is committed to tackling the cost of living crisis with a Fair Work approach, ensuring workers are paid at least the rLW – currently £10.90 per hour – and supporting more women into jobs through flexible working opportunities.

Minister for Employment and Fair Work Richard Lochhead said: “The Scottish Government’s commitment to promoting payment of the real Living Wage is a fundamental part of our National Strategy for Economic Transformation and a key cost of living policy to deliver a fairer and more equal society.

“The ONS figures confirm that Scottish employers are leading the way and we can be proud of the progress that has been made.

“There is still work to be done on tackling the gender pay gap, but we are taking steps to make this happen. We will publish our refreshed Fair Work Action Plan later this year, outlining the actions needed to close the gap further and create a more diverse and inclusive workplace.

“We will continue to work with employers, employability providers and partners to achieve this aim.” 

Read the Annual Survey of Hours and Earnings statistics in full here.

AnnualSurveyofHoursandEarnings2022publication-26October202229krDownload

Hospitality expert endorses industry as lasting career option

A SENIOR figure in Edinburgh’s hospitality scene is sharing how the industry can provide a long-term career path, citing how she wants to shake up how jobs in the sector are viewed in Scotland. 

Jackie Hudson plays a key role in driving the strategic direction at city-centre venue Surgeons Quarter which comprises the city’s largest independent hotel, Ten Hill Place, along with a thriving conference and events business that maximises the commercial use of the Royal College of Surgeons of Edinburgh (RCSEd) buildings and venues.

After 17 years of working in the industry is citing her experience to encourage others not to view it as a short-term job solution, of which she was once guilty of, having started in an events manager role after completing college while initially thinking of undertaking a career teaching maths.

As the industry recovers from the pandemic and manoeuvres continual economic fallout including a prolonged hiring crisis, Jackie believes now is the opportune time to make the move into hospitality.

These challenges have introduced positive changes across working hours, pay, training and development with more organisations increasing incentives – which previously were deemed key deterrents when viewing the industry as a long-term career plan.

Jackie (41), who serves as Revenue Manager and is part of Surgeons Quarter’s senior management team, said: “Working in the hospitality industry has presented opportunities I could only have dreamed of. It can be turbulent, busy and challenging but isn’t every industry like that these days?

“As an industry we’ve perhaps been too shy to shout about what a career can mean. I’d say lots of organisations have really had to focus on their development opportunities, conditions and base pay. I’m confident that we are at the very forefront of this nationally and striving to stay there.

“If you love interacting with people, want to create your own niche and are ready to learn from real life experience, the hospitality industry is the perfect career choice for you.

I’m also extremely proud to play a part in marketing Edinburgh on a national and international level. When I first started out, I never would’ve thought I’d be forecasting the revenue across such a diverse portfolio business.”

Highlighting the breadth of experiences Jackie has been able to undertake at Surgeons Quarter, earlier this month she was invited by Surgeons Quarter’s Managing Director, Scott Mitchell, to accompany him to the RCSEd’s International Conference in Chennai, India.

Scott said: “Jackie is a real lynchpin within our business. She isn’t front and centre at events or with our clients, so perhaps doesn’t always get the spotlight she deserves. 

“She is the embodiment of somebody that has carved a very strong career in hospitality and it’s been a privilege to see her develop and thrive as part of our team.”

As part of Jackie’s role, she plays an active part in recruitment and has a keen interest in building a diverse workforce to incorporate a variety of skills and abilities.

With over 22 different nationalities making up the 178-strong team, the multicultural business has placed focus on professional development and bringing the benefits of a career in the industry to forefront for those just starting out.

Surgeons Quarter promotes, sells and manages all commercial activities held within the RCSEd campus, which includes Ten Hill Place Hotel.

Since 2021 it has secured the Living Wage Accreditation while also increasing its team’s pension contributions to 7.5%.

For more information on events, conferences and meeting space at Surgeons Quarter visit: https://www.surgeonsquarter.com/conferences-meetings/

A new approach to work

Paper outlines plans for fairer labour market

A new single rate for the national minimum wage to reflect the increased cost of living, and more effective employment law to protect workers’ rights underpin plans to build a fairer labour market in an independent Scotland, according to Deputy First Minister John Swinney.

Following publication of the paper Building a New Scotland: A stronger economy with independence, Mr Swinney said the powers of independence would allow the Scottish Government to build a fairer, more equal future for all workers. This includes new measures to improve access to flexible working and better industrial relations.

Deputy First Minister John Swinney said: “Improving job security, wages and work-life balance are essential to delivering a more socially just Scotland. The UK labour market model has generated high income inequality while failing to drive productivity growth.

“Compared to independent European countries similar to Scotland, the UK has a higher prevalence of low pay, a bigger gender pay gap, longer working hours and significantly lower statutory sick pay.

“The Scottish Government is committed to Fair Work, but we could go much further to strengthen that agenda in an independent Scotland, developing a legal framework that more effectively addresses the workplace challenges of the 21st century. It would give us an opportunity to redesign the system to better meet the needs of Scotland’s workers and employers.”

Specific measures proposed in the paper include:

  • establishing a Scottish Fair Pay Commission to lead a new approach to setting a national minimum wage, working with employers, trade unions and government
  • improving pay and conditions with a single rate minimum wage for all age groups and better access to flexible work to help parents and carers
  • repealing the UK Trade Union Act 2016 as part of developing an approach to industrial relations which suits both workers and employers
  • introducing a law to help workers organise co-operative buyouts or rescues when a business is up for sale or under threat
  • legislating to support workers in precarious employment, and banning the practice of staff being made redundant and re-hired on reduced wages and conditions
  • increasing transparency in pay reporting and data to address gender, ethnicity and disability pay gaps and building on Scottish Government work to break down barriers to employment

The paper outlines how it would be easier for an independent Scotland to deal with labour market shocks.

In responding to the global financial crisis and pandemic, other countries were able to quickly draw on existing institutions and initiatives. This could include a permanent short-time working scheme, modelled on the German Kurzarbeit programme which provides compensation for private sector workers whose hours are reduced because of economic difficulty. A scheme like this in Scotland could help retain skills, reduce long-term unemployment and the associated costs and allow for more rapid economic recovery.

Job Security Councils, modelled on a Swedish initiative, could provide support to workers who have lost – or are at risk of losing – their jobs. These non-profit foundations led by social partners, employer representative bodies and trades unions, would help workers find new employment by providing a range of advice and high-quality retraining.

Building a New Scotland: A stronger economy with independence is the third paper in the Building a New Scotland series which will form a prospectus to enable people to make an informed choice about Scotland’s future before any referendum on independence takes place.

Business activity falls for second month running amid sharper falls in new work

  • Accelerated contraction in new work
  • Sentiment weakens further in September
  • Inflation remains elevated, but softens

Business activity across Scotland’s private sector contracted again in September, according to the latest Royal Bank of Scotland PMI® data. The seasonally adjusted headline Royal Bank of Scotland Business Activity Index – a measure of combined manufacturing and service sector output – was little-changed from 47.8 in August at 48.0, signalling a second consecutive month of contraction.

Despite easing, a high inflationary environment drove the latest decline in business activity and new orders, with the rate of contraction for the latter gaining momentum.

The challenging conditions meant that the degree of confidence further weakened during September. The latest reading registered a 28-month low, suggesting subdued performance as we progress into the final quarter of the year.

New business received at Scottish private sector companies contracted for the third month running during September. The rate of reduction quickened on the month and was solid overall. Inflationary pressures and the cost-of-living crisis were primarily linked to the latest downturn. 

At the sectoral level, manufacturing firms reported the softest decline in factory orders in three months, while services providers reported their first contraction since March 2021.

Amid soaring prices and recession fears, overall activity expectations weakened for the second consecutive month in Scotland’s private sector in September. Business confidence hit a 28-month low, posting below the average recorded over the series history and much weaker than the UK-wide average.

As has been the case since April 2021, employment across Scotland’s private sector increased in September. According to anecdotal evidence, successful hiring was in part linked to fresh graduates entering the workforce. While the respective seasonally adjusted index improved marginally from the that seen in August, it was the second-lowest reading in 17 months.

The pace of employment growth in Scotland was softer than the UK average.

September data revealed a reduction in backlogs of work for the fourth consecutive month at private sector companies in Scotland. The rate of depletion quickened to the fastest in 20 months. Respondents frequently mentioned the fall in backlogs reflected fewer new orders.

The rate of reduction at Scottish private sector companies was quicker than the UK-wide average which, in contrast to Scotland, softened during September.

For the twenty-eighth month running, average cost burdens rose across private sector firms in Scotland during September. The rise was largely blamed on inflationary pressures in labour market and supply chains. Despite the rate of input price inflation remaining historically high, the latest incline was the softest since August 2021 with both sectors noting slower rates of inflation.

Moreover, the pace of inflation in Scotland lagged behind that seen at the UK level, posting the second-softest of the 12 monitored regions ahead of the South West of England.

Scotland’s private sector firms raised their charges during September, thereby stretching the current run of output price inflation to 23 months. According to panellists, prices were raised primarily to offset increasing costs. That said, the rate of output price inflation was the weakest in 13 months and the softest of the 12 monitored UK regions.

Source: Royal Bank of Scotland, S&P Global.

Judith Cruickshank, Chair, Scotland Board, Royal Bank of Scotland, commented: “Business activity and new orders continued to decrease across the Scottish private sector during September, thereby stretching the current runs of contraction to two and three months respectively.

“The squeeze on customer disposable incomes amid a high inflation environment underpinned the latest downturn in output and new business.

“Despite falling business requirements, firms raised employment for the eighteenth successive month, albeit at a moderate pace. The combination of a drop in new work and expanding workforces allowed firms to work through their backlogs.  

“The post-pandemic boom is clearly at an end, as the ongoing cost-of-living crisis plays an increasingly important role. Moreover, the 12-month outlook continues to weaken.”