Scottish Government unveils jobs plan

apprenticesIndependence will equip Scotland for the first time ever with a fully-powered economic policy aimed at putting job creation in Scotland first, the Scottish Government says. Published today, A Jobs Plan for an Independent Scotland sets out a long-term, ten-point jobs plan for an independent Scotland.

The paper aims to show how, with control of economic and tax policy – ‘and – crucially – by bringing business, unions, government, and other partners together – we can build on Scotland’s strengths and create more and better job opportunities.’

The aim is to create the conditions where everyone able to work has the opportunity to do so.

Commenting on the plan, Finance Secretary John Swinney said: “Independence is a once in a lifetime chance to shift the balance of opportunity in Scotland’s favour – equipping our country with the powers we need to build secure, stable and rewarding employment for everyone who lives here.

“Independence is not a magic wand but the plan we have published today shows how future governments of an independent Scotland could tailor economic policy to put job creation first and deliver a long-term employment boost. With the right policies in place we could achieve full employment – giving our businesses a competitive edge and incentives to create more and better jobs here in Scotland.

“Few, if any, countries in the world, have the economic potential of Scotland. We have a talented and skilled workforce, world-leading universities, a modern college sector and a successful modern apprenticeship system.

“We have a strong international reputation for producing quality goods and services with notable success in sectors such as food and drink, the creative industries, life sciences and modern manufacturing.

“Our natural and energy resources are unrivalled: in 2012 we produced nearly six times our oil demand and we have huge renewable energy potential.

“With the limited powers of devolution Scotland’s economic performance has improved but far too many Scots still feel they have to leave each year to get a job or further their career.

“Of course many people will always want to travel and work elsewhere – but that must be a choice and not a requisite for those looking to succeed.

“With independence our economic policy would be tailored precisely to our own needs – for example in order to resist the gravitational pull of London, we would be able to cut the headline corporation tax rate by up three per cent which could boost employment by up to 27,000 jobs.

“The gains of independence will only happen if we work hard and use policy wisely. But what is clear is that no-one else is better placed to take decisions about the Scottish economy than the people who live, work and run businesses here.”

The Scottish Government has previously set out how improvements in productivity, employment and population could lead to additional tax revenues of £5 billion a year by 2029-30. The jobs plan will contribute to that increase by:

• Creating an education and training environment to equip our young people to fulfil their potential, with a target of 30,000 Modern Apprenticeship starts per year by 2020;

• Controlling the tax system to provide incentives for companies to base their operations and headquarters in Scotland and create jobs. A three per cent cut in the headline corporation tax rate, in part to resist the gravitational pull of London, could boost employment by 27,000 jobs;

• Using employment policy to bring together employers and unions to boost workforce participation, skills and productivity, in place of the UK Government’s confrontational approach. Boosting productivity by just 1 per cent could increase employment in Scotland by 21,000 jobs over the long term;

• Tailoring policy to boost key job-creating sectors in which Scotland has an international comparative advantage, such as renewable energy;

• Reindustrialising Scotland with a focus on strengthening manufacturing, promoting innovation and encouraging international trade and development;

• Boosting infrastructure and transport by establishing a rule which sets a minimum level for public sector capital spending as a percentage of GDP;

• Establishing a Scottish Business Development Bank as part of a strategy to improve access to finance for growth companies;

• Using a new overseas network of 70-90 embassies dedicated to boosting Scottish international exports. In the long-run a 50 per cent increase in exports could increase employment by over 100,000;

• Increasing opportunities for parents of young families to participate in the labour market by expanding childcare.

• Tailoring immigration policy to retain talented overseas students who want to contribute to the Scottish economy.

Opponents of independence argue that the ten-point plan has no credibility; they say that until the government provides an answer on what Scotland’s currency will be, then savings, pensions, mortgages, rents and jobs are at risk as the government’s economic plans are based on ‘guesswork.’

Jobs Fair at Granton Campus

Edinburgh's Telford Exterior

Edinburgh College is hosting a jobs fair next Wednesday (30 April), where job seekers will have the opportunity to meet potential employers.

The jobs fair is aimed at anyone looking for a new job, including students about to finish their studies and people looking to change careers. More than 20 organisations will be present at the event, where attendees will be able to find out about career opportunities, full and part-time vacancies, and volunteer and placement opportunities.

Organisations attending include: Skills Development Scotland; Volunteer Centre Edinburgh; Radisson Hotels; Smile Childcare; The Action Group; Blue Arrow; Apex Hotels; Autism Initiatives; the Army; the RAF; Jobcentre Plus; Scottish Ambulance Service; Specialized Security; Remploy; Business Gateway; Independent Living Services; Police Scotland; Brightwork Ltd.

As well as employers, the Support@Work group, which is part of the Scottish Trades Union Congress, will be available to advise on employee rights and explain how to resolve any issues with an employer. It has previously helped students with issues such as not receiving the minimum wage or a proper contract of employment. Edinburgh College’s Jobzone and Student Services staff will also be on hand to provide advice about careers.

The jobs fair is free to attend and is taking place on Wednesday 30 April between 3pm and 6pm at:

Edinburgh College Granton Campus,
350 West Granton Road,
Edinburgh, EH5 1QE

Encouraging signs as wages outstrip inflation

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Brighter outlook for job seekers as unemployment falls again

There have been more indications that economic recovery is gathering pace with the publication of the latest figures by the Office  of National Statistics yesterday.

Unemployment has dropped below 7% for the first time since the recession and employment has seen the biggest annual jump in a generation, the latest figures show.

Unemployment fell by 77,000 in the last 3 months, taking the unemployment rate to 6.9% for the first time since 2009.

In the largest annual rise in nearly 25 years, the number of people of people in a job rose by 691,000 – more than double the population of Newcastle – bringing the record number of people in work to 30.39 million.

Wages also rose on the year by 1.7%, against yesterday’s announcement that March’s inflation had dropped to 1.6%, and job vacancies rose again, up 108,000 over the past year bringing the number of vacancies in the UK economy to 611,000.

Minister for Employment Esther McVey said: “More young people are in work, more women are in work, wages are going up, and more and more businesses are hiring – and it’s a credit to them that Britain is working again.

“But there is still more to do – which is why I’d go even further and call on more employers to work with us to tap into the talent pool the UK offers.”

In Scotland, employment levels are at their highest since records began with 2,575,000 people over 16 now employed. The employment level is now 13,000 above its pre-recession peak of 2,562,000 in 2008.

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National Statistics also published yesterday by the Scottish Government showed Gross Domestic Product (GDP) grew by 0.2 per cent over the fourth quarter of 2013 and increased by 1.6 per cent during 2013, the fastest annual growth since 2007.

The highest employment level record has been met by an increase in employment of 68,000 over the year, driven by an increase of 46,000 in the female employment level. The female rate of employment in Scotland is now 1.8 percentage points above the UK.

Scotland has again outperformed the UK across all headline labour market indicators, with a lower unemployment rate, higher employment rate and lower economic inactivity rate: details not missed by First Minister Alex Salmond.

Although the Scottish unemployment rate increased by 0.1 percentage points over the quarter, over the year it fell by 0.8 percentage points and now stands at 6.5 per cent compared to 6.9 per cent in the UK as a whole.

For the 17th consecutive month the claimant count decreased in Scotland with the number of people claiming Jobseekers Allowance falling by 2,400 over the month to March.

Welcoming the latest labour market figures, First Minister Alex Salmond said: “Today’s historic jobs figures show the Scottish Government’s policy of investing in infrastructure to boost the economy is making significant progress with employment levels at a record high. To put it in perspective, there are 285,000 more people in employment today than there were when the Scottish Parliament was established in 1999.

“Scotland is outperforming the UK across employment, unemployment and inactivity rates which goes to show even with the limited powers over the economy at our disposal we are improving our country’s economic health.

“Everyone aged between 16 and 19 is guaranteed an offer of a place in training or education through Opportunities for All and just this week we revealed we will create thousands of additional Modern Apprenticeship places, bringing our total target for MA’s to 30,000 every year by 2020 – double the level we inherited in 2007.

“This commitment to equipping our young people with the skills that they need will be further strengthened with the appointment of Angela Constance as Cabinet Secretary for Training, Youth and Female Employment.”

National Statistics

Free customer service training

A joint venture by The Edinburgh Partnership, Joined up for Jobs and Connected will deliver Free Service Training for the Retail Sector at Muirhouse Millennium Centre on Wednesday 12th March, running from 11am – 2.00pm. This will run for one day only, but should be of great advantage to young and older people alike. At the end of the session attendees will be given a proof of attendance certificate.

If you are interested, phone Peter Airlie at Muirhouse Millennium (Community) Centre (0131-467-3578) or Gwen on 0131-557-7913 to book a place.

Carmichael welcomes latest employment figures

The latest employment figures show that Scotland is doing well as part of the UK, Scottish Secretary Alistair Carmichael said today.

Unemployment in Scotland fell by 7,000, to 196,000 in the period August to October 2013, according to Office for National Statistics (ONS) data released today.

The Scottish unemployment rate is 7.1 per cent, which is below the average of 7.4 per cent for the whole of the UK.

The labour market statistics also show employment in Scotland has increased by 11,000 over the three months August to October 2013. The number of those in employment in Scotland now stands at 2,546,000.

Scottish Secretary Alistair Carmichael said: “Every new job created in Scotland represents someone getting back into work and is to be welcomed. Today’s figures reinforce how well Scotland is doing as part of the UK and they are good news for people and families across the country. There are 83,000 more people in employment in Scotland than there were a year ago.

“Unemployment has fallen and employment increased over the three months to October. We have also seen a further significant fall of 2,900 in people claiming Jobseekers Allowance in November. As a result there are 23,300 fewer Scots claiming JSA compared to one year ago.

“This comes on the back of recent positive news and the continuing recovery of our economy. We will keep up all our efforts to create the right conditions for the private sector to create sustainable, long-term jobs.”

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Concern over RBS job losses

Royal Bank of Scotland (RBS) is to cut a further 1,400 jobs from its retail banking head office over the next two years, it announced yesterday. The Bank said that up to half of the losses will be at the bank’s offices in Edinburgh, where the ‘back room’ jobs under threat include marketing, communications and other support functions.

The latest round of redundancies follow the loss of more than 35,000 job cuts since public money was used to bail out RBS following the financial crisis – the government still owns more than 80% of the bank.

Ross McEwan, the chief executive of RBS’s UK retail operations, said: “To serve our customers well, we have to ensure that our resources are focused on the things that matter most to them. Regrettably, we can only do that by restructuring the way we work in head office, so that every effort is concentrated on supporting our customers and the frontline staff that serve them. This is clearly difficult news for our staff and we will do everything we can to support them, including seeking redeployment opportunities wherever possible to ensure compulsory redundancies are a last resort.”

The Unite union described the cuts as “brutal and irresponsible”. Warning of the impact that the cuts will have on local economies and customer service, Unite national officer Dominic Hook said: “This is brutal and irresponsible behaviour from RBS which is almost entirely owned by the taxpayer. It is high time that the banks took its social responsibilities seriously. Since the beginning of the year RBS, HSBC, Barclays and Lloyds have announced plans to slash around 6,900 jobs. The industry almost caused the economy to implode in 2008 and now it is contributing to a jobs crisis.

“RBS made £826 million in the first quarter of this year, the bank is returning to profit. Unite does not believe there is a business case for cutting jobs so drastically. RBS argues that the restructure will make the bank more customer focused but a bank can’t be more customer focused with 1,400 fewer staff. Unite is demanding no compulsory redundancies and we expect this state-owned bank to do everything to ensure this is the case.”

There will be a significant impact on RBS staff in head office functions in Edinburgh with the rest of the cuts spread across the country. Two departments providing support to front line staff are being cut by 80 per cent. Since 2008 the bank has cut over 30,000 staff.

Local politicians have also expressed concern over the job losses. Speaking after yesterday’s announcement, Edinburgh Western MSP Colin Keir said: “This is devastating news and I understand that the bank have spoken to the Scottish Government who are acting as quickly is as possible to ensure that appropriate support can be brought in to minimise the impact and soften the blow for the people concerned. The staff facing this terrible news are not the ones who caused the crisis at RBS but members of staff with mortgages and everyday budgets and expenses – and many of them are my constituents. I met RBS this afternoon and have discussed how they will support staff through this difficult time.

“Whilst this news is deeply disappointing the long term investment being announced for Gogarburn, highlights the strength of business locating in Scotland, and I hope this will increase long term security for RBS employees. My thoughts are with the people who are experiencing losses today.”

North and Leith MP Mark Lazarowicz said: “This is a body blow to staff at RBS at what is a difficult time for anyone looking for work. I have been in touch with union officials in support of the staff and I will be seeking a meeting with senior management to discuss the redundancies. At the meeting I will be asking for a clear indication of future employment plans for the bank’s Edinburgh operations and assurances that these job losses are not part of a policy of outsourcing.

“The Chairman and Chief Executive of RBS claimed recently that the financial restructuring of the bank was largely over and that the Government could start preparing to return RBS to the private sector. That should not be at the expense of hard working employees, many of whose colleagues have already paid the price of the failure of management at the bank in the years prior to the financial crisis through losing their jobs.”

Councillor Frank Ross, the city council’s Economic Convener, said: “While this is disappointing news, Edinburgh remains an important player in the world financial markets. We were always aware that the financial crisis would result in a degree of restructuring in the finance sector and that, unfortunately, this would impact on levels of unemployment in the city. Obviously we recognise that this brings great uncertainty and worry for those affected. For this reason, we will seek to work with the Government, their agencies and our partners to ensure the workforce are supported as much as possible and I will be pulling together a task force to coordinate this activity.”

Hugh Rutherford, Chair of the Edinburgh Business Forum, said: “Although disappointing news we need to remember the financial institutions who have recently opened centres here including Tesco Bank, Sainsbury’s Bank and the Green Investment Bank thanks to our talented and skilled workforce. This continued investment from the financial sector in Edinburgh will help keep the City economy growing. The diversity and strength of the Edinburgh financial services sector, which has been growing through the downturn, and the skilled financial services workforce, will hopefully be absorbed by the new growth sectors in the financial areas of the capital.”

Earlier this month, RBS reported a return to profit the bank hopes to return to the private sector next year.

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Council spearheads drive to create 20,000 jobs

The city council is calling on its public sector partners and Edinburgh’s businesses to help support the creation of 20,000 new jobs in the city. An ambitious five-year economic strategy for Edinburgh will be launched at a conference being hosted by the City of Edinburgh Council and the Edinburgh Business Forum this morning.

Businesses and other partners are being encouraged to join the Edinburgh Guarantee programme to give young people the apprenticeships and work opportunities they need to boost their job prospects. They are also being asked to get more involved in the city’s communities by investing in its social and community enterprises, act as ambassadors for Edinburgh and mentor new entrepreneurs.

City businesses are also being asked to share their knowledge and international connections with the Council to help attract vital new inward investment. Delegates at today’s event will be invited to contribute their ideas to help drive the strategy forward. The conference will be split into two sessions. The first will focus on outlining the national / local context and the second session will seek an endorsement from partners and will outline their role in taking forward delivery of the Strategy.

The sessions will be attended by business leaders including Lord Smith Chair of the UK Green Investment Bank, senior staff from Harvey Nichols in Edinburgh, Scottish Enterprise, Marketing Edinburgh, the Financial Times, Edinburgh BioQuarter, and Mama Tea. The Leader of the Council Andrew Burns and Chief Executive Sue Bruce are both speakers as well as Nicola Sturgeon, Deputy First Minister and Cabinet Secretary for Infrastructure, Investment and Cities. Robert Carr, past Chairman of the Edinburgh Chamber of Commerce will compère the event.

Speaking before the conference, Council Leader Andrew Burns said: “Scotland’s cities and their regions are key drivers of economic growth for the nation’s economy as a whole, so it’s really important that Edinburgh’s Economic Strategy is not just owned by the council, but by the whole of Team Scotland. Edinburgh was resilient during the banking crisis and has bounced back well, but in tough economic times the last thing we want to do is get complacent. With huge pressure on council resources, we need to invest where we will have the most impact and closing the jobs gap is absolutely our number one priority. Joblessness creates major social costs for the whole city, and tackling this issue head on now will help us lay the foundations for a new phase of growth in Edinburgh over the next ten to 20 years.”

Sue Bruce, Chief Executive of the City of Edinburgh Council said: “The new strategy will help us to invest in people and in places, to provide an excellent joined-up service to businesses and to pool our efforts with partners.  We believe this is the best route to help create the right conditions for new jobs. The vision of the Edinburgh Guarantee, that all sectors of the city work together to ensure that every school leaver in Edinburgh will leave school with the choice of a job, training or further education opportunity open to them, is of vital importance to the future economic health of the city. Focusing on jobs, engaging the whole Council in economic development and increasing collaboration with our partners in the city are all central to delivering our bold targets to ensure that we play a major role in boosting Edinburgh’s economy.”

Hugh Rutherford, Chair of Edinburgh Business Forum and a partner at National Property and Planning Consultants, Montagu Evans said: “No one partner or organisation in the city has sufficient influence to drive development of the economy alone, so it is critically important that we pool our knowledge, expertise and resources to ensure Edinburgh remains an attractive place to do business. We want businesses to work with us to get people in the city back to work and that means engaging with the Economic Strategy to ensure sustainable economic growth.”

Further information on the Economic Strategy

Forged in the wake of the banking crisis, the Council’s new Economic Strategy is the first to focus on the Scottish capital and the part it plays in the wider regional and Scottish economy. It follows the largest and most wide-ranging economic analysis ever undertaken in the city.

The ‘Strategy for Jobs’ responds to a widening jobs gap – rapid growth in the working age population means that by 2018 there could be up to 37,000 more people looking for work in the city than jobs available – and sets out a pioneering ‘Whole Council’ approach to address this.

The Economic Strategy sets out three key targets for 2012-17: to support the creation and safeguarding of 20,000 jobs; to support £1.3 billion of infrastructure investment in the city and to help 10,000 people into work or learning.

These objectives will be achieved through four programmes of activity with detailed action plans: investing in the city’s physical development; supporting inward investment; supporting businesses and helping unemployed people into work or learning.

Key highlights include the completion of Edinburgh’s tram project; maximising low-carbon opportunities with the arrival in Edinburgh of the £1 billion UK Green Investment Bank; engaging with a target list of potential inward investors in key city regions of the Middle East, China, North America and London; the further development of the ‘Edinburgh Guarantee’, a collaborative initiative with businesses to secure training, education or employment for every school leaver in Edinburgh; the creation of a dedicated new hub for business customers at the City of Edinburgh Council’s headquarters; and the creation of ‘Integrated Employability Service’ that will work with national agencies to provide a ‘no wrong door’ approach for job seekers across Edinburgh. Extensive public consultation was carried out from July to September last year on a comprehensive analysis of Edinburgh’s economy – The Edinburgh City Region Economic Review. This was the largest and most wide-ranging consultation on the economy ever undertaken in the Capital. Its findings underpin the key areas of action in the new Economic Strategy.