Campaign aims to help fill vacant posts across Edinburgh
A marketing campaign to support the recruitment of more adult social care workers in Edinburgh has launched this week, to help address the high level of vacancies in the sector.
The campaign – titled ‘there is more to care than caring’ – will raise awareness of the career opportunities available in adult social care and encourage people to apply. Activity includes radio, outdoor and digital advertising, highlighting the important work done by adult social care workers.
It is part of the Scottish Government’s commitment to attract more people to work in adult social care, retain existing staff and raise its status as a profession. This builds on a pay uplift for all adult social care staff which guarantees them a minimum of at least £10.90 an hour from this April.
Social Care Minister Kevin Stewart visited Leuchie House in North Berwick yesterday to see the work it does to support people affected by stroke, multiple sclerosis and neurological conditions.
Mr Stewart said: “Working in adult social care can be challenging but offers the opportunity to have a hugely positive impact on people’s lives on a daily basis.
“We are increasing pay, improving terms and conditions in the sector, and developing clear career pathways for the workforce, ahead of the introduction of the National Care Service. This will lead to more rewarding roles for the existing adult social care workforce, and for new entrants to the profession.
“This campaign highlights that while relevant experience can help, it is core interpersonal skills such as communication, compassion, empathy and respect that are most highly valued.
“If these are skills you possess then adult social care could be the career for you.”
Thank you for that welcome, thank you all for joining us at Bloomberg.
From the way we communicate and collaborate, to the way we buy and sell goods and services, digital technology has transformed nearly every aspect of our economic lives.
How do I know that?
Because I too, just like Matt asked ChatGPT to craft the opening lines of this speech.
Who needs politicians when you have AI?
Like other countries, the UK has been dealing with economic headwinds caused by a decade of black swan events: a financial crisis, a pandemic and then an international energy crisis.
And my party understands better than others the importance of low taxes in creating incentives and fostering the animal spirits that spur economic growth.
But another Conservative insight is that risk taking by individuals and businesses can only happen when governments provide economic and financial stability.
So the best tax cut right now is a cut in inflation.
And the plan I set out in the Autumn Statement tackles that root cause of instability in the British economy.
The Prime Minister talked about halving inflation as one of his five key priorities and doing so is the only sustainable way to restore industrial harmony.
But today I want to talk about his second priority, to grow the economy. (In case you weren’t sure, I have them on the screen behind me.)
We want to be one of the most prosperous countries in Europe and today I’m going to outline the 4 pillars of our plan to get there.
Just as our plan to halve inflation requires patience and discipline, so too will our plan for prosperity and growth.
But it’s also going to need something else which is in rather short supply – Optimism, but we can get there.
Just this month columnists from both left and the right have talked about an “existential crisis,” “Britain teetering on the edge” and that “all we can hope for…is that things don’t get worse.”
I welcome the debate – but Chancellors, too, are allowed their say.
And I say simply this: declinism about Britain is just wrong.
It has always been wrong in the past – and it is wrong today.
Some of the gloom is based on statistics that do not reflect the whole picture.
Like every G7 country, our growth was slower in the years after the financial crisis than before it.
But since 2010, the UK has grown faster than France, Japan and Italy. Not at the bottom, but right in the middle of the pack.
Since the Brexit referendum, we have grown at about the same rate as Germany.
Yes we have not yet returned to pre-pandemic employment or output levels.,
But an economy that contracted 20% in a pandemic still has nearly the lowest unemployment for half a century.
And while our public sector continues to recover more slowly than we would like from the pandemic – strengthening the case for reform – our private sector has grown 7.5% in the last year.
Yes inflation has risen – but is still lower than in 14 EU countries, with interest rates rising more slowly than in the US or Canada.
And yes we have to improve our productivity. But output per hour worked is higher than pre-pandemic.
And last week a survey of business leaders by PWC said the UK was the third-most attractive country for CEOs expanding their businesses.
Economists and journalists know you can spend a long time arguing the toss on statistics,
But the strongest grounds for optimism comes not from debating this or that way of analysing data points but from our long term prospects: because when it comes to the innovation industries that will shape and define this century the UK is powerfully positioned to play a leading role.
Let’s just look at some of them.
In digital technology, as we heard from Michelle, we have become only the third economy in the world with a trillion-dollar sector.
We have created more unicorns than France and Germany combined with eight UK cities now home to two or more unicorns.
The London / Oxford / Cambridge triangle has the largest number of tech businesses in the world outside San Francisco and New York.
PWC say that UK GDP will be up to 10% higher in 2030 because of AI alone. Fintech attracted more funding last year than anywhere in the world outside the US.
Or life sciences, where we have the largest sector in Europe. And a brilliant advocate with our superb Science Minister George Freeman.
We produced one of the world’s first Covid vaccines, estimated to have saved more than 6 million lives worldwide.
We identified the treatment most widely used to save lives in hospitals, saving more than a million lives across the globe.
We are behind only the US and China in terms of high-quality life science papers published, and every one of the world’s top 25 biopharmaceutical firms has operations in the UK.
Another big growth area is our green and clean energy sector.
The UK is a world leader here, with the largest offshore wind farm in the world. Last year we were able to generate an incredible 40% of our electricity from renewables. But on one day, a rather windy December 30th, we actually got 60% of our electricity from renewables – mainly wind.
McKinsey estimate that the global market opportunity for UK green industries could be worth more than £1 trillion between now and 2030.
And we are proceeding with the new plant at Sizewell C, led by our excellent Business Secretary who also spoke very wisely and surprisingly classically earlier on.
I could also talk about our creative industries which employ over two million people and grew at twice the rate of the UK economy in the last decade.
They have made the UK the world’s largest exporter of unscripted TV formats and help give us a top three spot in the Portland Soft Power index.
Or our advanced manufacturing sector, key to exports, where we produce around half of the world’s large civil aircraft wings and its biggest aeroengines as well as around half of the world’s Formula One Grand Prix cars.
The golden thread running through the industries where the Britain does best is innovation.
Amongst the world’s largest economies, the Global Innovation Index ranks us fourth globally.
Those innovation industries now account for around a quarter of our output. They have been responsible for nearly all our productivity growth since 1997.
And they’re also the reason that all of you are here.
In the audience we have leaders from Meta, Microsoft, Amazon, Apple and Google, the world’s largest tech companies all with major operations in the UK.
We have Monzo and Revolut, shining examples from our world-beating fintech sector.
And we have founders and CEOs from some of our most exciting UK technology companies, like Proximie and Matillion.
You are all vital for Britain’s economic future, but Britain is vital for your future too.
So I want to ask all of you to help our country achieve something that is both ambitious and strategic.
I want you to ask you to help turn the UK into the world’s next Silicon Valley.
What do I mean by that?
If anyone is thinking of starting or investing in an innovation or technology-centred business, I want them to do it here [in the UK].
I want the world’s tech entrepreneurs, life science innovators, and green tech companies to come to the UK because it offers the best possible place to make their visions happen.
And if you do, we will put at your service not just British ingenuity – but British universities to fuel your innovation, Britain’s financial sector to fund it and a British government that will back you to the hilt.
Our universities are ranked second globally for their quality and include three of the world’s top ten.
In order to support the ground-breaking work they do in so many new fields the government has protected our £20 billion research budget, now at the highest level in history.
And as you look for funding to expand, we offer one of the world’s top two financial hubs and the world’s largest net exporter of financial services.
The capability of the City of London combined with the research strengths of our universities makes our aspiration to be a technology superpower not just ambitious but achievable – and today I am here to say the government is determined to make it happen.
But like any business embracing new opportunities, we should also be straight about our weaknesses.
Structural issues like poor productivity, skills gaps, low business investment and the over-concentration of wealth in the South-East have led to uneven and lower growth. Real incomes have not risen by as much as they could as a result.
Confidence in the future though, starts with honesty about the present.
We want to be one of the most prosperous countries in Europe, so today I set out our plan to address those issues.
That plan, our plan for growth, is necessitated, energised and made possible by Brexit.
The desire to move to a high wage, high skill economy is one shared on all sides of that debate.
And we need to make Brexit a catalyst for the bold choices that we’ll take advantage of the nimbleness and flexibilities that it makes possible.
This is a plan for growth and not a series of measures or announcements, which will have to wait for budgets and autumn statements in the years ahead.
But this plan is a framework against which individual policies will be assessed and taken forward.
I set out that plan, those priorities under four pillars. They build on the “People, Capital, Ideas” themes set out by the Prime Minister last year in his Mais Lecture and as such are the pillars essential for any modern, innovation-led economy.
For ease of memory the 4 pillars all happen to start with the letter ‘E’ . The Four ‘E’s of economic growth and prosperity. And they are Enterprise, Education, Employment and Everywhere.
So let’s start with the first ‘E’ which is enterprise. If we are to be Europe’s most prosperous economy, we need to have quite simply, its most dynamic and productive companies.
There is a wide range of literature citing the importance of entrepreneurship on business dynamism, whereby more productive firms enter and grow and less productive firms shrink.
But I don’t just believe the theory, I have put it into practice.
I set up and ran my own business for 14 years. It was one of the best decisions I ever made – and I actually owe it to Margaret Thatcher and Nigel Lawson.
Because by the time I got to university and was thinking about my career options, they had changed attitudes towards entrepreneurship. Had they not, I would have probably ended up in the City or the Civil Service.
Instead I took a different route to end up at the Treasury – less the Fast Stream, more the Long Way Round.
Like thousands of others setting up on their own, I learned to take calculated risks, live with uncertainty and work through failures (of which there were many).
Every big business was a start-up once – and we will not build the world’s next Silicon Valley unless we nurture battalions of dynamic new challenger businesses.
Today, we are already ranked by the World Bank as the best place to do business amongst large European nations and second only to America in the G7.
And the result of that pro-business climate is that since 2010 we have created more than a million new businesses in this country.
But the question I want to ask is how are we going to generate the next million?
Firstly, we need lower taxes. In Britain, even after recent tax rises, we have one of the lowest levels of business tax as a proportion of GDP amongst major countries.
But we should be explicit: high taxes directly affect the incentives which determine decisions by entrepreneurs, investors or larger companies about whether to pursue their ambitions in Britain.
With volatile markets and high inflation, sound money must come first.
But our ambition should be to have nothing less than the most competitive tax regime of any major country.
That means restraint on spending – and in case anyone is in any doubt about who will actually deliver that restraint to make a lower tax economy possible, I gently point out that in the three weeks since Labour promised no big government chequebook they have made £45 billion of unfunded spending commitments.
But it isn’t just about lower taxes. We also need a more positive attitude to risk taking.
Let’s start with one of the most public risks taken this year. Richard Branson, his team and the UK Space Agency deserve massive credit for getting LauncherOne off the ground in Cornwall.
The mission may not have succeeded this time, but what we learn from it will make future success more likely.
We should heed the words of Thomas Edison who said: “I have not failed 10,000 times – I’ve successfully found 10,000 ways that will not work.”
Edison was American – and our attitude to risk in this country can still be too cautious compared to our US friends.
But we are capable of smart risking in this country: at the start of the pandemic we bought over 350 million doses of vaccine without knowing if they would actually work – and ended up with one of the fastest and most effective vaccine programmes in the world.
We also need, if we are going to deliver those competitive enterprises, smarter regulation.
Brexit is an opportunity not just to change regulations but also to work with our experienced, effective and independent regulators to create an economic environment which is more innovation friendly and more growth focused.
Our Chief Scientific Adviser, Sir Patrick Vallance, is currently reviewing how the UK can better regulate emerging technologies in high growth sectors and the government is identifying where to reform the laws we inherited from the EU.
In the digital space Patrick is working with the brilliant , Matt Clifford – who we heard from earlier- and our amazing Culture Secretary Michelle Donelan, both of whom gave excellent speeches.
Before we conclude those findings, we want to hear from you. That why we’ve invited you this morning – and we will repeat the process for green industries, life sciences, creative industries and advanced manufacturing.
Finally when it comes to the ‘E’ of Enterprise there is a critical need for easier access to capital, particularly scale ups.
I am supporting important changes to the pensions regulatory charge cap and I have used the regulatory flexibility provided by Brexit to change the Solvency II regulations which will begin to be implemented in the coming months.
Alongside other measures announced in the Edinburgh reforms, this could unlock over one hundred billion pounds of additional investment into the UK’s most productive growth industries.
But there is much more to be done and I want to harness the ideas and the expertise in this room to turn the ‘E’ of enterprise into an enterprise culture built on low taxes, reward for risk, access to capital and smarter regulation.
The next ‘E’ is Education.
This is an area where we have made dramatic progress in recent years thanks to the work of successive Conservative education ministers.
The UK has risen nearly 10 places in the global school league tables for maths and reading since 2015 alone.
Our teachers and lecturers are some of the best in the world.
And as the Prime Minister has said, having a good education system is the best economic, moral, and social policy any country can have.
That is why the Autumn Statement we gave schools an extra £2.3 billion of funding and why the Prime Minister recently prioritised the teaching of maths until 18.
But there is much to improve. We don’t do nearly as well for the 50% of school leavers who do not go to university as we do for those who do.
We have around 9 million adults with low basic literacy or numeracy skills, over 100,000 people leaving school every year unable to reach the required standard in English and maths.
That matters.
We are becoming an adaptive economy in which people are likely to have to train for not one but several jobs in their working lives.
Not having basic skills in reading and maths makes that difficult, sometimes impossible.
And equally important is what happens beyond school.
We have made progress with T-levels, boot camps and apprenticeships and Sir Michael Barber is advising the government on further improvements to the implementation of our reform agenda and we want to ensure our young people have the skills they would get in Switzerland or Singapore.
If we want to reduce dependence on migration and become a high skill economy, the ‘E’ of education will be essential – and that means ensuring opportunity is as open to those who do not go to university as to those who do.
So, Silicon Valley enterprises; Finnish and Singaporean education and skills; let me now turn to the third ‘E’ which is Employment.
If companies cannot employ the staff they need, they cannot grow.
High employment levels have long been a strength of our economic model.
Since 2010, the UK has seen a record employment rate, the lowest unemployment rate in nearly fifty years and labour market participation at an all-time high.
Partly thanks to the coalition reforms of a decade ago we are at 76% ,employment levels higher than Canada, the US, France or Italy.
But the pandemic has exposed weaknesses in our model. Total employment is nearly 300,000 people lower than pre-pandemic with around one fifth of working-age adults economically inactive.
Excluding students that amounts to 6.6 million people – an enormous and shocking waste of talent and potential.
Of that 6.6 million people, around 1.4 million people want to work. But a further five million do not.
It is time for a fundamental programme of reforms to support people with long-term conditions or mental illness to overcome the barriers and prejudices that prevent them working.
We will never harness the full potential of our country unless we unlock it for each and every one of our citizens.
Nor will we fix our productivity puzzle unless everyone who can participate does.
So to those who retired early after the pandemic or haven’t found the right role after furlough, I say: ‘Britain needs you’ and we will look at the conditions necessary to make work worth your while.
That is why employment is such a vital third ‘E.’
Enterprise, Education and Employment – three key components for long term prosperity.
I conclude with my final ‘E’ – Everywhere. That means ensuring the benefits of economic development are felt not just in London and the South-East but across the whole of the UK.
It is socially divisive if young people feel the only way to make a decent living is to head south. But it is also economically damaging.
If our second cities were the productive powerhouses we see in the other major countries, our GDP would be nearly 5% higher – making us second only to the United States and Germany for GDP per head.
That is why levelling up matters. And why last week it was so exciting to see the progress being made.
Since February 2020, when the levelling up agenda really got underway ,70% of new employed jobs have been created outside of London and the South-East.
Thanks to our powerhouse regions we remain one of the top 10 manufacturers globally, and the same is starting to happen with new industries: whether fintech in Bristol, gaming in Dundee or clean energy in Teesside.
Every region has seen pay grow faster than London since 2010, which shows that our approach to regional growth is working.
But there is much more to do, and whilst government grants can play a galvanising role they are not the whole answer.
We also need the connectivity that comes from better infrastructure.
That is why in the Autumn Statement we protected key projects like HS2, East West Rail and core Northern Powerhouse Rail.
Digital connectivity matters as well. Under Michelle’s leadership, full-fibre broadband now available to more than 40% of all homes in the UK.
Last year four million more premises got access, with the biggest increases in Scotland and Northern Ireland.
But the ‘E’ of Everywhere has to be about local wealth creation as much as about local infrastructure.
So this year we will announce investment zones, mini-Canary Wharfs, supporting each one of our growth industries, and each one focused in high potential but underperforming areas, in line with our mission to level up.
They will be focused on our research strengths and executed in partnership with local government, with advantageous fiscal treatment to attract new investment.
We will shortly start a process to identify exactly where they will go.
But spreading opportunity everywhere needs local decision making alongside local infrastructure and local enterprise.
So we must also give civic entrepreneurs the ability to find and fund their own solutions without having to bang down a Whitehall door.
Shortly over 50% of the population of England will be covered by a devolution deal and two thirds covered by a unitary authority and that’s a very important part of that.
But we need to move more decisively towards fiscal devolution so that fantastic local leaders like Ben Houchen and Andy Street have the tools they need to deliver for their communities.
Four ‘E’s – Enterprise, Education, Employment and Everywhere – four ‘E’s to unlock our national potential to be one of Europe’s most exciting, most innovative and most prosperous economies.
Bill Gates is supposed to have said people overestimate what they can do in one year and underestimate what they can do in ten.
When it comes to the British economy, we are certainly not going to fall into that trap.
We will remember the essential foundation on which long term prosperity depends, namely the sounds money that comes from bringing down inflation. But right now, starts our longer-term journey into growth and prosperity.
World-beating enterprises to make Britain the world’s next Silicon Valley.
An education system where world-class skills sit alongside world-class degrees.
Employment opportunities that tap into the potential of every single person so businesses can build the motivated teams they need.
And as talent is spread everywhere, so we will make sure opportunities are as well.
Yes there are many structural challenges to address. And working our four pillars we will do just that. Never forgetting though the combination of bold ingenuity and quiet confidence that defines our national character.
Ladies and gentlemen, being a technology entrepreneur changed my life.
Being a technology superpower can change our country’s destiny.
Private sector output falls for fifth month running
Contraction in new work remains solid
Employment falls for first time in 21 months
According to the latest Royal Bank of Scotland PMI® data, private sector activity fell solidly during December. The Business Activity Index – a measure of combined manufacturing and service sector output – improved from November’s recent low of 43.9 to 48.3 in December, signalling the softest downturn in activity in the current five-month sequence of reduction.
Similarly, while new work received fell strongly in December, the pace of decrease was softer than that recorded in the previous survey period. That said, the ongoing drop in business requirements amid challenging demand conditions resulted in the first fall in employment in 21 months. Moreover, as backlogs of work continued to decrease and expectations moderated further.
Demand shortfalls continued to lead a decrease in new work received across Scotland’s private sector in December, thereby extending the run of contraction to six successive months. While the rate of decline eased from November’s recent low, it was solid overall. The cost of living crisis, higher interest rates and growing economic uncertainty were all linked to the loss in client appetite.
Moreover, the downturn in incoming new business across Scotland was stronger than that recorded at the UK-level.
Sentiment across the Scottish private sector ticked down for the second month running during December. The latest reading was the second weakest in 31 months and comfortably below the historical average. The war in Ukraine, a slowdown in the housing market and inflation weighed heavily on confidence.
Of the 12 monitored regions, Scotland had the third-lowest Future Activity Index reading, ahead of Northern Ireland and the North East.
Latest data signalled a fall in employment across Scotland during December, thereby ending the run of uninterrupted growth that began in April 2021. This was driven by lower staffing levels reported at service providers, as goods producers posted another slight rise in headcounts. The overall decline was only marginal. Where a fall was noted, firms were either actively reducing headcounts or delayed hiring despite reports of resignations.
The pace of job shedding across Scotland was slightly faster than the UK average, which similarly reported a fall in payroll numbers for the first time in 22 months.
As has been the case since June, levels of unfinished work fell across Scotland during December. The rate of depletion eased on the month to the softest since August, but was solid overall. Surveyed businesses reported that as the pipeline of new work was eroded, they were able to work through backlogs.
The pace of contraction across Scotland was in line with that recorded for the UK as a whole.
Companies in Scotland registered another substantial incline in average cost burdens during December, thereby stretching the current run of inflation to 31 months. While the pace of incline was the softest in 18 months, it registered well above the pre-COVID average. An array of reasons was attributed to the latest incline, which included higher wages, inflation, the ongoing energy crisis and Brexit.
Price pressures, while elevated, were still weaker across Scotland than that seen across the UK as a whole.
Prices charged for the provision of goods and services rose for the twenty-sixth successive month during December. Scottish firms were keen to share cost burdens with clients. The pace of charge inflation eased from November to the softest in three months but was still among the highest on record.
Source: Royal Bank of Scotland, S&P Global.
Judith Cruickshank, Chair, Scotland Board, Royal Bank of Scotland, commented: “The Scottish private sector recorded another grim performance during December. Client appetite suffered as various economic headwinds continued to dominate the business environment. That said, the downturn across Scotland visibly eased from November, as both private sector output and new work received fell at softer paces.
“Moreover, the loss in demand helped to relieve price pressures, with slower rates of inflation seen for both input costs and output charges. Nonetheless, these remain well above their respective historical averages.
“As we move into 2023, it will be important as to how firms adjust to demand shortfalls. We have already noticed the first reduction in employment since March 2021. Moreover, amid a high inflation and interest rate environment, it will be difficult to revive demand and thus will be the primary concern for businesses.”
According to the latest Royal Bank of Scotland Report on Jobs survey, hiring activity fell across Scotland again in November amid greater economic uncertainty and strong cost pressures.
For the second month running, both permanent staff hires and temp billings fell, with the former recording the quickest reduction since June 2020. While staff availability continued to deteriorate, demand for labour expanded at a softer, but still strong rate.
The ongoing imbalance of labour demand and supply led to further rises in both starting salaries and short-temp pay.
Downturn in permanent placements gathers pace
For the second successive month, permanent placements fell across Scotland in November. The rate of reduction quickened from October to the fastest since the initial phase of the pandemic in June 2020 and was sharp overall. Increased market uncertainty and candidate shortages were blamed for the latest drop in permanent staff appointments.
Permanent placements also fell across the UK as a whole for the second month in a row, albeit at a softer pace than that seen in Scotland.
November data highlighted a fall in temp billings across Scotland for the second consecutive month. Adjusted for seasonality, the respective index pointed to a slower and modest pace of decrease. According to anecdotal evidence, concerns about the outlook weighed on labour market activity.
In contrast to the trend seen for Scotland, temp billings expanded modestly at the UK level.
Supply of permanent staff falls steeply in November
As has been the case since February 2021, the supply of permanent staff across Scotland contracted during November. Furthermore, the rate of deterioration was the most severe since May and among the fastest on record. Recruiters stated that a combination of labour and skill shortages, Brexit and economic uncertainty reduced the supply of candidates.
Notably, the downturn in permanent staff supply across Scotland outstripped the UK average for the eighth month in a row.
A twenty-first successive monthly fall in temporary candidates across Scotland was recorded during November. The rate of reduction accelerated on the month, and was the sharpest since June. The decline also exceeded that seen across the UK as a whole. Recruiters blamed the fall on a stronger preference for permanent roles, candidate shortages and economic uncertainty.
Upward pressure on starting salaries intensifies in November
Latest survey data signalled a further rise in salaries awarded to permanent new joiners in Scotland for the twenty-fourth successive month in November. The rate of pay inflation ticked up from October’s 16-month low, and was rapid overall. The latest rise in salaries was attributed to competition for labour amid staff and skill shortages.
For the second month running, Scotland noted a quicker rise in starting salaries than recorded at the UK level.
Average hourly wages increased further across Scotland in November, thereby stretching the current sequence of inflation to two years. The rate of pay growth accelerated from October’s 18-month low and was sharp overall. Scottish recruiters commonly noted that acute skill and candidate shortages continued to exert upward pressure on wages.
Further slowdown in growth of demand for permanent staff in November
November data pointed to another monthly increase in the number of permanent vacancies across Scotland, extending the current run of expansion that began in February 2021. That said, while growth remained strong, the rate of increase weakened to the second-slowest in the aforementioned sequence.
Across the monitored job categories, Nursing/Medical/Care reported the quickest rise in vacancies. Executive & Professional and Hotel & Catering reported reduced demand for permanent staff.
Recruiters across Scotland signalled a twenty-sixth successive monthly rise in temporary vacancies during November. However, the rate of expansion cooled since the previous month and was the softest seen since February 2021.
IT & Computing registered the quickest upturn in short-term vacancies, followed by Accounts & Financial.
Sebastian Burnside, Chief Economist at Royal Bank of Scotland, commented: “Following the post-pandemic hiring boom, the latest Report on Jobs survey indicates that recruitment activity lost further momentum in November amid a slowdown across the economy.
“Greater uncertainty around the outlook and candidate shortages have taken a toll on staff hiring across Scotland. Latest data indicated a notably steeper contraction in permanent placements, while temp billings fell for the second consecutive month.
“At the same time, labour scarcity resulted in strong growth in pay, with both starting salaries and hourly wages rising at sharper rates during November.
“The steeper drop in candidate availability across Scotland, which was often blamed on a generally low unemployment rate, fewer foreign workers, worries over the economic climate and cost of living crisis, is likely to add further upwards pressure on pay in the months ahead, particularly if firms want to attract and secure the skilled workers they need.”
Scotland’s councils set out ambitions to help young people succeed
Local authorities have published their plans for closing the poverty-related attainment gap.
Councils across Scotland have set their own “stretch aims” for children and young peoples’ progress in literacy and numeracy levels, for senior phase qualifications achieved, as well as for the number of young people participating in education, training, or employment.
For both overall attainment and in terms of closing the poverty-related attainment gap in literacy and numeracy, the collective stretch aims of local authorities demonstrate ambitions to work towards achieving the biggest two-year improvement recorded since the introduction of the Scottish Attainment Challenge.
This work will be supported by the Scottish Government’s £1 billion Scottish Attainment Challenge, with £43 million in Strategic Equity Funding allocated to local authorities this year. In total more than £130 million has been distributed to schools so far this year to help close the poverty-related attainment gap.
Cabinet Secretary for Education and Skills Shirley-Anne Somerville said: “We are committed to substantially eliminating the poverty-related attainment gap and councils have a crucial role in driving this national mission forward at a local level.
“Given the effect of COVID-19 on children and young peoples’ achievement of Curriculum for Excellence levels in 2020/21, these collective aims represent significant local ambition for recovery back to and beyond the national position pre-pandemic, aiming to narrow the poverty related attainment gap by over seven percentage points in both primary school literacy and numeracy compared to 2020/21.
“These will drive an enhanced focus on outcomes for children and young people, ensuring they have the opportunities and support they need to reach their full potential.”
Pupils at Wester Hailes High School welcomed Jamie Hepburn MSP, Minister for Further Education, Higher Education, Youth Employment and Training, to their classroom yesterday to showcase ENABLE Works’ Stepping Up programme.
The ground-breaking initiative, established in 2009 by ENABLE, Scotland’s largest charity for people with learning disabilities, supports young people who have a learning disability to build and explore their aspirations for the future, helping them to positively progress into employment, education and industry training upon leaving school.
Stepping Up currently has a 98% positive destination success rate for young people with learning disabilities – higher than current school leaver statistics across the country. The programme aims to tackle the underrepresentation of people with learning disabilities in the workplace through early intervention.
During his visit to Wester Hailes High School, Mr Hepburn heard directly from students who take part in Stepping Up about how the variety of interactive workshops and training activities have helped to increase their confidence and develop their employability skills and has allowed them the chance to realise their potential and consider their aspirations for the future.
Mr Hepburn was also able to get involved in an interview workshop, aimed at building employability skills, and had the chance to try ENABLE Works’ Virtual Reality (VR) headset, as the programme utilises the latest technologies to allow the young people involved to truly be able to envision their future.
Jay, one of the Stepping Up students, explained what the programme has meant to him:“I have really enjoyed my time on Stepping Up so far, as I’ve learned a lot about college and work and had the chance to try new things such as the VR headset, while working alongside people in a similar position to me.
“As a pupil in fifth year, I’ve started thinking about what I’d like to do after school. Before Stepping Up I really wasn’t sure what was next for me, I didn’t know much about the world of work, and I wouldn’t have known how to write a CV or how to act in an interview. Thanks to the programme, I now understand how to do these things and I feel much more prepared.
“I’ve been discussing college courses and I’m feeling really excited about what options are out there for me. I’d love to study drama or film and I’m looking forward to visiting different colleges to learn more about the full-time options.”
Director of ENABLE Works, Ashley Ryan said:“Stepping Up is the only programme of its kind in Europe and now operates in over 75 schools across Scotland, making a real difference to the lives of thousands of young people.
“We were very pleased to have welcomed Mr Hepburn to Wester Hailes High School to see first-hand the impact the programme is having on disabled young people, to overcome any barriers that can prevent a positive transition from school into adulthood.
“Helping equip young people with learning disabilities with the confidence and skills they need to positively progress into employment or further education is invaluable, and we hope this early intervention will help to close the disability employment gap that exists in Scotland.”
Jamie Hepburn MSP, Minister for Further Education, Higher Education, Youth Employment and Training, said: “It has been inspiring to hear about the vital work that ENABLE does to connect disabled young people to fair work, education and productive activities designed to support a successful transition into adult life and work.
“The Scottish Government is committed to supporting organisations, such as ENABLE, to ensure that people with additional support needs are given a wealth of opportunities.
“I look forward to learning more about the progress of the Stepping Up programme.”
For more information on the Stepping Up programme please contact the ENABLE Works team on enable.works@enable.org.uk or 0300 0200 101.
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.”
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.”
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.”
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.
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.
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.
