Market Profile Scotland Contents Overview of Scotland The Seven Cities of Scotland Summary Overview of Scotland Demographics Youth Employment/ Unemployment in Scotland The population of Scotland has increased each year since 2001 and is now at its highest ever. Currently 345,000 young people in National Records of Scotland (NRS) show that the estimated population of Scotland was employment up by 9,000 over the year 5,327,700 in mid-2014. (Sep-Nov 2014) Population change in Scotland is determined by three key elements: Scotland outperforms the UK on youth employment, youth unemployment and youth inactivity rates – • Birth rates higher youth employment rate (56.3% vs. 52.2%), lower youth unemployment rate (16.4% vs. 17.4%) and • Life expectancy lower youth inactivity rate (32.7% vs. 36.8%). • Net migration Of the age groups, those aged 16-24 have the highest unemployment rate - 17,790 young people aged 16- These are, in turn, influenced by a combination of factors, including the relative levels of 24 were on the claimant count in December 2014, a economic prosperity and opportunity, quality of life and the provision of key public services. decrease of 8,830 (33.2%) over the year. The number of people in employment in Scotland has increased by 50,000 over the past year, reaching a record high of 2,612,000 as recent GDP figures show the fastest annual growth since 2007. Overview of Scotland Economy of Scotland Scotland currently has the highest employment rate, lowest unemployment rate and lowest inactivity rate of all four UK nations. Main industries of Scotland include: Key Facts (January 2015): Agriculture, Banking & Finance, Computing, Construction, Defence, Electronics, Emergency Services, Fishing, Food & Drink, Forestry, Life • The level of unemployment has fallen by 20,000 over the year and by 79,000 since its Sciences, Oil & Gas, Renewable Energy, Shipbuilding, Textile, Tourism recession peak in 2010. and Transport. • The Scottish unemployment rate of 5.7 per cent remains below the overall UK rate, with The Scottish economy has now seen two years of continuous Scotland also having a higher employment rate and lower economic inactivity rate. economic growth, with the pace of expansion particularly vigorous in the first half of 2014. • The number of people claiming Jobseekers Allowance has fallen by 24.9 per cent over the year. At a sectoral level, services’ is leading the pack but production output has also continued expanding to edge above pre-recession levels. • More women in employment than ever before and jobseekers allowance claimants at its lowest level since 2008. The Scottish labour market has continued to benefit from the strength in demand. Solid jobs growth has increased employment and helped push • Over the past four and half years employment has risen by 167,000 and unemployment down the headline unemployment rate towards its pre-crisis average. has fallen by 61,000. Moreover, participation rates have hovered around record highs, • The sharpest increase in new jobs was in Aberdeen, with Edinburgh the top city for reflecting a rise in women entering the workforce. These trends have part-time and temporary work last month (January 2015). exerted upwards pressure on nominal wage growth which, combined with benign inflation, has resulted in the first (modest) growth in real • The IT and computing sector had the biggest increase in new jobs, while nursing and wages since 2008. medical care work was the fastest growing for temporary jobs. Overview of Scotland Scotland has a very good global reputation and brand Scotland is one of the world’s top exporting nations Scotland’s top international export destinations are the U.S.A. (at £3.6 billion), The Netherlands (at £2.7 billion), France (at £2.2 billion), Germany (at £1.5 billion) and Norway (at £920 million). Switzerland, Spain, Ireland, Belgium and Denmark all receive over £500 million of Scottish exports. Top Five Export Sectors The top five export sectors in 2013 were food and drink (£5bn), petroleum and chemicals (£3.5bn), professional services (£1.9bn), machinery (£1.8bn) and computers/electronics (£1.4bn). Four of these sectors have seen increases in international sales since 2002; for example, the value of ‘legal, accounting, architecture, technical testing and analysis services’ exports has increased by 140%, or £1.1bn, since 2002. Food and drink saw an increase in international sales of £2.2bn, or 81%, since 2002, with most of this increase due to a £2.0bn increase in whisky sales. Overview of Scotland Top Five Export Sectors Manufacture of food products, beverages and Machinery and equipment Productivity is crucial to tobacco products Scotland’s sustainable Between 2002 and 2013 the machinery and economic growth Between 2002 and 2013 the manufacture of food equipment industry exports have increased by products, beverages and tobacco products industry 131% and now is worth around £1.8bn. Scotland has some key competitive exports have increased by 81% and now is worth advantages from its academic around £5bn. Legal, accounting, management, excellence and skills base to its business architecture, engineering, technical testing infrastructure and natural assets. Scotland Distilling, rectifying and blending of spirit and analysis activities is a country rich in opportunity and bursting with innovation, with many Between 2002 and 2013 the distilling, rectifying and Between 2002 and 2013 the legal, accounting, competitive qualities that make blending of spirits industry exports have increased by management, architecture, engineering, technical it an attractive place to do 86% and now is worth around £4.3bn. testing and analysis activities industry exports business, invest, learn, live have increased by 140% and now is worth around and work. Manufacture of coke, refined petroleum and £1.9bn. chemical products Between 2002 and 2013 the manufacture of coke, refined petroleum and chemical products industry exports have increased by 74% and now is worth around £3.5bn. Overview of Scotland Major Industries of Scotland Scotland boasts world-class industries including: Scotland’s 100% renewables target is the most ambitious in the European Union Energy Scotland’s overall share of renewable energy will be at least 30% by 2020. This Scotland is at the forefront of innovation in the energy industry. Diverse and exceeds the EU’s 2020 renewable energy target of 20% and will be double vibrant, the Scottish energy industry enjoys a reputation for world-class research, the UK’s agreed EU target of 15%. In reaching 30% renewable energy by 2020, development and production in a number of energy sectors including: Oil & Gas, Scotland’s target is on a par with that for Denmark (30%), Portugal (31%), and Wind, Marine, Carbon Capture & Storage, Smart Grids, Fuel Cells and Bio-Energy. considerably higher than Germany (18%), Ireland (16%), Spain (20%) and France (23%). Over the next years leading to 2020, renewables in Scotland could provide: Offshore wind represents the biggest opportunity for sustainable • up to 40,000 jobs and £30b investment to the Scottish economy economic growth in Scotland • significant displacement and reduction in carbon emissions; a strengthening The large scale development of offshore wind represents the biggest opportunity of future energy security through the harnessing of sustainable indigenous for sustainable economic growth in Scotland for a generation, potentially resources supporting up to 28,000 directly related jobs and a further 20,000 indirect jobs and generating up to £7 billion for the Scottish economy by 2020. • and a transformational opportunity for local ownership and benefits. Scotland is committed to generating an equivalent of 100% of electricity demand from renewable sources by 2020, along with at least 11% renewable heat. Overview of Scotland Life Sciences Scotland’s life sciences sector is set to double economic contribution by 2020. Some 600 life-sciences organisations employ nearly 30,000 people, making Scotland one of the largest life-sciences clusters in Europe. Scotland is home to a thriving biocluster, providing the ideal environment for innovation and company growth. Scotland already has a world-class reputation in stratified medicine and boasts the cutting-edge Stratified Medicine Scotland Innovation Centre in Glasgow, while a stem cell industry cluster continues to develop around the Edinburgh-based Centre for Regenerative Medicine. In addition, a new innovation centre for industrial biotechnology is forecast to increase related turnover by £3 billion over the next 15 years and could create up to 1,500 jobs before 2020. Financial and Business Services Scotland’s Financial and Business Services industry was identified in the Government Economic Strategy as one of the growth sectors in which Scotland can build on existing comparative advantage and increase productivity and growth. Scotland is internationally recognised as the most important UK financial centre outside London and the South East, with a breadth of financial services including global custody, asset servicing, banking, investment management, corporate finance, general / life assurance and pensions. Business service is also a crucial sector for Scotland, having grown in recent years to comprise a large and diverse range of professional services. Overview of Scotland Food and Drink Tourism The food and drink industry is a major contributor to Scotland’s economy with Scotland’s tourism industry could be worth more than £23 billion to one in five people in manufacturing