Workplace staff by Alex Kotliarskyi
Conflicting information on job creation is not any laughing matter, writes TERRY MURDEN
As each seasoned comic will verify, it’s not simply good timing that makes a joke work, however the best way you inform ’em. The identical could be stated about statistics, and particularly the info round overseas direct funding (FDI) and firm creation which aren’t essentially all they might appear.
New figures from the Division for Worldwide Commerce confirmed 4,408 jobs had been created in Scotland in 2021/22, sharply up on the earlier 12 months (3,245) and the corresponding precedent days (2,946).
That’s the excellent news. The even higher information is that information printed final month by Scottish Growth Worldwide (SDI) confirmed greater than 7,500 deliberate actual dwelling wage jobs had been generated by inward funding in FY21/22. Inside days, the Huge 4 accountant EY printed information stating that greater than 10,000 jobs had been created through FDI in Scotland throughout 2021. Any extra bids?
The timescales aren’t instantly comparable – the primary two are for the fiscal 12 months, the latter the calendar 12 months – however there may be adequate overlap to query why there may be such a big distinction, the EY determine being greater than twice the DIT’s information.
A spokesman for the DIT informed me EY “might use a special methodology”. The Scottish Authorities defined that, aside from the marginally completely different timeframe, the EY Attractiveness Survey additionally ooks at “investor sentiment”. A key issue, nevertheless, could also be that the EY information contains funding from different elements of the UK (not but overseas). All informed, it’s a messy set of figures to be utilizing to be able to construct and measure an financial technique.
Whereas the federal government and its cheerleaders boast about Scotland’s success, and never with out some justification, different information questions the common repetition about Scotland’s second place within the inward funding league desk. A CEBR report in Could confirmed that in 2021 it had slipped to fifth, its 92 initiatives properly behind London with 492, the south east (163), the West Midlands (145) and North West England (139). Scotland noticed a 24% fall on the earlier 12 months, the second largest fall of any space of the UK.
One other report from EY printed final month on the monetary companies sector confirmed Scotland had slipped from second to fourth behind London, the West Midlands and Northern Eire.
Regardless of the fixed references in press releases to “top quality jobs” there’s a lack of any element on what kind of salaries are being paid. Scottish Growth Worldwide refers to 98% paying an actual dwelling wage (an annual wage of not less than £19,305) which suggests the bulk are on the decrease finish of the size.
There are questions round different information in regards to the development of tech corporations. In keeping with analysis from Dealroom for the UK’s Digital Financial system Council, there’s a rising class of early-stage corporations in Scotland that may go on to turn out to be future tech giants.
Its checklist of examples, printed lately by the enterprise media, proved to be a bit skinny. It included the prepared meals enterprise Parsley Field, run by Chris van der Kuyl and Kevin Dorren. Not solely is it not a tech enterprise its worth has plummeted from £84m on flotation in March 2021 to presently stand at £16m after a collection of setbacks. It could be on the mend, however it should take an enormous leap of religion to consider it will likely be a tech big any time quickly.
One other on the checklist is Embody Company, which has an workplace in Glasgow however is headquartered in London and was arrange by two guys in Sydney, Australia.
Featured as having raised greater than £52m within the first quarter of this 12 months was Pocket FM, known as an Edinburgh firm however which seems to have been confused with an organization by the identical identify primarily based in India.
My late colleague Invoice Jamieson repeatedly bemoaned the scarcity of knowledge on the Scottish economic system and on this proof there may be a great deal of complicated and inaccurate data swilling round that permits politicians and others to select and select which they like to consider to be able to argue their case.
Generally even the excellent news may be onerous to chew on. Scottish Commerce Minister Ivan McKee took some satisfaction from the FDI figures, stating: “These newest outcomes are very encouraging and as soon as once more underline the power of the inward funding provide in Scotland…” earlier than including… “despite the numerous challenges posed by the pandemic and Brexit.”
That is as close to as we get to a Scottish authorities minister admitting that regardless of all of the name-calling and mud-throwing the SNP goals on the Brexiteers, there was no adverse affect on the move of funding or jobs into the UK or Scotland. That’s, if you happen to consider the info.
tmurden@dailybusinessgroup.co.uk
Terry Murden held senior positions at The Sunday Instances, The Scotsman, Scotland on Sunday and The Northern Echo and is now editor of Day by day Enterprise
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