Question reference: S6W-26092
- Asked by: Jamie Greene, MSP for West Scotland, Scottish Conservative and Unionist Party
- Date lodged: 12 March 2024
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Current status: Answered by Gillian Martin on 21 March 2024
Question
To ask the Scottish Government what its response is to EY’s UK Regional Economic Forecast, from February 2024, which predicts that the average employment growth rate in Scotland for 2024-27 will be the lowest regional rate at 0.8%.
Answer
The EY Regional Economic Forecast for 2024 suggests that Scotland will have a similar annualised employment growth rate to several regions and nations of the UK between 2024-2027, including Wales, Northern Ireland, the North East of England and the West Midlands. EY also indicate that Scotland had lower economic inactivity than Northern Ireland, the North East of England, Wales, the North West of England and East Midlands in 2023.
Employment growth is influenced by many factors including job creation and labour supply, with the latter reflecting demographics, migration, and participation in the labour market. Of those factors, Scotland has near record levels of payrolled employees at 2.46 million in February 2024.
The EY report identifies the importance of reducing economic inactivity and supporting people into employment. The Scottish Government is undertaking a range of action to address Scotland’s labour market challenges. For example, the Scottish Government will invest up to £90 million in devolved employability services No One Left Behind in 2024/25, to support those facing structural barriers to entering employment, alongside investment in childcare and support for those experiencing ill-health to remain in the labour market. The Scottish Government will also launch Scotland’s Migration Service during the course of 2024 to support inward investors and Scottish employers to use the immigration system to meet their skills and labour needs.