Is the Scottish Economy recovering?

The Bank of Scotland reported today that economic activity in Scotalnd is increasing and that this could be signalling the start of economic recovery.

The Bank of Scotland's purchasing managers' index (PMI) for April found the fastest rise in business activity for a year, in both manufacturing and service industries.
The index also showed employment rising at its fastest pace for nine months.
The bank's chief economist said the growth was largely down to demand in the UK.
The expansion was broad-based by sector, with a return to growth in factory output accompanying a further rise in activity at services firms.
The latest survey suggested Scotland outperformed the UK as a whole.
The index recorded a fifth straight monthly increase in the volume of new work placed with businesses.
But firms said they were paying more for energy, food and some imported items because of unfavourable currency exchange rates.

Export orders

There was no change in the level of new export orders placed with manufacturers.

Staffing levels rose at both manufacturers and service providers in April, with similar rates of increase in each sector.

Output prices increased for the fourth month in a row. Although only modest, the latest rise was the most marked since last September.
Bank of Scotland chief economist Donald MacRae said the results suggested the Scottish economy was "beginning a more robust recovery".
Responding to the figures, Finance Secretary John Swinney said: "We welcome this further positive evidence that Scotland's economy is improving and note that private sector business activity in Scotland expanded for the seventh consecutive month in April, reaching a 12-month high.
"We recognise that market conditions remain challenging and that is why the Scottish government remains committed to investing in jobs and training as well as ensuring we have the most competitive business environment anywhere in the UK."

'Optimism climbing'

Meanwhile, a separate report by accountants BDO LLP suggested business confidence improved in Scotland last month, driven by "steadily climbing optimism levels" in the services sector.
However, its Business Trends survey suggested the outlook for the manufacturing sector remained bleak.
Overall, the report indicated that the second quarter of the year had got off to a good start.
Martin Gill, head partner at BDO LLP in Scotland, said: "We're pleased to see confidence slowly returning to businesses, and the continuing revival of the all-important services sector.
"However, as in previous months, our indices reveal a mixed picture. The manufacturing sector is a particular concern."

Original source: http://www.bbc.co.uk/news/uk-scotland-scotland-business-22493304

£3 million for youth employment schemes in Scotland

Directed initaitives to engage with young people and help them gain real skills for the workplace are to receive a share of £3 million from the Scottish Government.

Thousands of young Scots will be helped into jobs following the allocation of £3 million Scottish Government funding for the third sector.
Twenty-four projects across Scotland will receive investment from the Third Sector and Social Enterprise Challenge Fund with projections showing that 2,019 young people will be given the chance to improve their employability.
Minister for Youth Employment Angela Constance announced the funding in Edinburgh while visiting one of the successful recipients, Street League, who use football and structured education to build confidence, develop skills and help young people into jobs.
She said:
“We have put record levels of investment into opening up opportunities for our young people to improve their chances of finding employment.
“The Third Sector Challenge and Social Enterprise Fund forms part of our unique guarantee to 16 to 19 year olds that all will be offered a place in training or education. I am very pleased to be able to fund such a broad range of projects, all of which have a single goal – helping Scotland’s young people into a job.
“Street League is just one example of how to engage young people by wrapping up real skills training with something that many enjoy and I hope to see all 24 projects making a difference to the lives of Scotland’s young people over the coming months.”
Background
The Third Sector and Social Enterprise Challenge Fund forms parts of the Scottish Government’s £30 million investment in The Youth Employment Strategy and was originally intended to be £2.5 million. Relevant organisations were invited to bid earlier this year.
Projects to receive funding from the Third Sector Challenge Fund are as follows:

• Aberdeen Foyer (Aberdeen and Aberdeenshire) – £85,497
• Barnardo’s (Renfrewshire, Edinburgh, Highland, Dundee, Perth and Kinross) – £97,466
• Claverhouse (Angus, Dundee, Perth and Kinross) – £125,775
• DEAP Ltd (Dundee) – £64,670
• Glasgow Regeneration Agency (Glasgow) – £98,108
• Impact Arts (Glasgow, Borders, Edinburgh, North Ayrshire) – £98,108
• Into Work (West Lothian) – £76,000
• Inverclyde Community Development (Inverclyde) – £77,823
• Kibble Education and Care Centre (Renfrewshire, East Renfrewshire, Glasgow, Inverclyde) – £246,016
• McSence Communications Ltd (East Lothian, Midlothian) – £62,676
• Princes Trust (various regions) – £165,725
• Rathbone Training (various regions) – £249,759
• Recycle a Bike (Falkirk) – £58,420
• Right Track (Glasgow, Edinburgh, Midlothian, Lanarkshire) – £235,670
• Routes to Work (North Lanarkshire) – £113,146
• Routes to Work South (South Lanarkshire) – £71,399
• Springboard (various regions) – £249,825
• Street League (Edinburgh, Glasgow) – £93,324
• The Conservation Volunteers Scotland (Glasgow, South Ayrshire, Highland, Edinburgh, Stirling) – £158,491
• The Lennox Partnership (West Dunbartonshire) – £78,390
• The Shirlie Project (Highland) – £106,952
• The Wise Group (Renfrewshire, East Ayrshire) - £155,231
• Volunteer Action Angus (Angus) – £60,156
• West Fife Enterprise (Fife) – £63,063

Article source: http://www.scotland.gov.uk/News/Releases/2012/09/youth-employment17092012

Good news for Scotland's Economy?

Scotland’s economy is displaying “resilience” in the face of the global slowdown despite fresh downbeat news on the employment front say the Bank of Scotland.

Today’s Report on Jobs from Bank of Scotland points to a further reduction in permanent placements during August, while demand from businesses for both permanent and temporary workers eased.

However, recruitment firms reported higher average salaries last month against the reductions experienced in June and July. August also saw a sharp rise in the number of people who found temporary employment.

The report’s labour market barometer, an indicator designed to provide a single-figure snapshot of conditions, where 50 equates to no change, registered at 52.4 last month. Though up from 50.2 in July and hitting a three-month high, it remains below the series average of 53.4.

The bank’s chief economist, Donald MacRae, claimed the findings still signalled a “welcome improvement” in the labour market.

had risen for the first time in six months.

“The Scottish economy is showing resilience in the face of the global slowdown,” he noted.

The report is seen as one of the most authoritative snapshots of Scotland’s jobs market and is based on the responses from more than 100 recruitment and employment agencies. It follows last week’s disclosure that unemployment north of the Border 

According to the latest BoS survey, six out of eight employment sectors saw an increase in permanent job vacancies in August, with the greatest monthly rise in the IT and computing sector.

• UK households are likely to see an increase in real disposable income next year for the first time since the credit crunch struck, according to research today. The Centre for Economics & Business Research is also forecasting a return to economic growth.

Article Source: http://www.scotsman.com/business/economics/mixed-jobs-news-but-bos-says-scotland-is-showing-resilience-1-2530316

Sharp Rise in Temporary Jobs in Scotland

The number of temporary jobs rose sharply in Scotland last month, according to a survey of recruitment agencies.

The Bank of Scotland Report on Jobs said one in three agencies reported an increase in temp staff billings.
The rate of growth was the fastest in four months and much stronger than the UK average.

However, the survey also recorded a second consecutive monthly fall in permanent placements.

The rate of decline was the fastest recorded since last December.

The number of candidates placed into permanent work also fell across the UK as a whole, although Scotland saw a sharper decline overall.

The survey also indicated an increase in vacancies for both permanent and temporary jobs.

Scottish recruitment firms reported slightly higher average permanent salaries in August, in contrast with falls reported in June and July.

Demand for temporary staff increased in seven Scottish employment sectors in August.

A welcome Improvement

Sector data suggested the strongest increase in available temp job roles was seen in IT and computing, while engineering and construction saw a marginal rise.

Bank of Scotland chief economist Donald MacRae said: "The Scottish labour market showed a welcome improvement in August with increases in temporary jobs and a rise in vacancies for both permanent and temporary jobs.

"However, appointments to permanent jobs fell for the second successive month, illustrating the challenge of maintaining the overall trend of increasing employment.

"The Scottish economy is showing resilience in the face of the global slowdown."

The Scottish government said the latest report builds on last week's labour market statistics, which showed that the employment rate in Scotland has continued to climb and remains higher than the UK rate.

A spokesman added: "The Scottish government and our agencies are supporting economic recovery by investing every penny we can in capital infrastructure to build houses, schools and roads to stimulate growth and create jobs."

Artice Source: http://www.bbc.co.uk/news/uk-scotland-scotland-business-19610971

CIPD view on the death of no-fault dismissal

Another view point on today's govenment decision on no-fault dismissal proposals.

CIPD welcomes death of no-fault dismissal proposals but cautions that alternative plans to make it easier to fire workers risk undermining good performance management practices

The Government's decision to put Adrian Beecroft's controversial proposals for no-fault dismissal on the policy bonfire were warmly welcomed today by the Chartered Institute of Personnel and Development (CIPD), as Vince Cable announced a package of employment reforms designed to improve labour market flexibility.

However, as the government announces a range of measures to make it easier for businesses to dismiss employees, the CIPD warns that it is crucial that these are not used in such a way as to undermine mutual trust and confidence in the workplace between employers and employees.

Commenting on the announcements, Mike Emmott, employee relations adviser at CIPD, said: "The idea that businesses should be able to manage the performance of their employees effectively, without fearing extortionate costs and a time consuming process, is a good one. However, the proposed reforms must not undermine the principle of mutual trust and confidence that lies at the heart of positive and productive employment relations."


Commenting on some of the specific proposals, Mike Emmott said:

• The consultation on 'settlement agreements': "The reality is that employment relationships sometimes don't work out and compromise agreements can be used as a quick, face saving way out for employees and employers. However, we will be responding to the Government consultation to ensure that settlement agreements can't be used as a first port of call by employers simply because an employee's 'face doesn't fit'. Employers need to understand that there is no substitute for good performance management practices and settlement agreements will do nothing to protect them from discrimination and constructive dismissal claims if they act improperly.
• The change in the cap on payouts for unfair dismissal to a year's pay: "It is not clear how much of an impact the reduction in the limits to payouts for unfair dismissal will have. The average award for unfair dismissal in 2010-11 was about £9,000, well below the average earnings of most people. Furthermore, employers need to be aware that this cap will not apply to claims brought against them in discrimination cases, where the cap on payouts is unlimited."
• The reduction in the minimum time for redundancy consultations: "The CIPD supports a reduction in the minimum time for redundancy consultations from 90 days to 30, to give employers greater flexibility in terms of managing the redundancy process. An employer's ability to respond swiftly to changing market requirements is a key element of the UK's flexible labour market. Furthermore, employees themselves may sometimes prefer a shorter period of consultation, when it is clear that redundancies cannot be avoided, as this may help to minimise periods of uncertainty surrounding their future

Article source: http://www.cipd.co.uk/pressoffice/press-releases/default.aspx

Unfair dismissal pay-outs to be cut, says Cable

But fire-at-will not included in tribunal reforms

The cap for unfair dismissal awards could be reduced to one year’s salary under employment tribunal changes outlined by the government today.

Business secretary Vince Cable said the proposal was going out to consultation, as part of changes that will also see the tribunal system streamlined and judges given more power to throw out weak cases.

The compensation limit for a successful unfair dismissal claim is currently £72,300.

The government has also given its backing to settlement agreements, under which staff agree to leave their employer with a pay-off and no threat of a tribunal case.

Acas have agreed to provide a new code of practice in this area and businesses will be consulted on the move’s implementation, along with recommendations to change TUPE regulations.

But the government has confirmed that it will not be introducing laws to allow compensated no fault dismissal.

Cable said that the reforms would reduce bureaucracy for firms and increase their hiring confidence.

“We have been looking across the range of employment laws with a view to making it easier for firms to hire staff while protecting basic labour rights,” Cable explained.



“More can be done to help small companies by reducing the burden of employment tribunals, which we are reforming, and moving to less confrontational dispute resolutions through settlement agreements."

The government’s intentions were broadly welcomed by UK business groups.

“The fear of malicious tribunal claims and an unnecessarily antagonistic dismissal process has a chilling effect on employment,” said Adam Marshall, director of policy at the British Chambers of Commerce.

“We would urge the government to move swiftly from consultation to implementation on settlement agreements and lower tribunal awards, as these proposals will boost confidence when businesses on the ground can see them in action.”

But while trade unions welcomed the decision not to implement the controversial ‘fire at will’ proposals recommended by the Beecroft Review, they warned that the changes would make it easier for unscrupulous employers to mistreat staff.

“Reducing payouts for unfair dismissals will let bad employers off lightly and deter victims from pursuing genuine cases,” said TUC general secretary Brendan Barber, adding that the move would fail to kick-start the economy.

The government has already doubled the length of service required for an employee to make an unfair dismissal claim from 12 months to two years.

However, legal experts suggested that reducing the cap for unfair dismissal payments could have little practical impact, as compensation rarely came close to the £72,300 limit.

In reality, only 6 per cent of claims resulted in awards of more than £30,000, said James Cox, partner at law firm Gibson Dunn & Crutcher.

“It is not uncommon for an employee to reject a sensible settlement offer from their former employer only to lose their claim at tribunal or recover less by way of compensation than was offered in settlement,” he explained. “This is not only a tragedy for the employee concerned but often results in thousands of pounds of wasted costs for the employer.”

Article source: http://www.peoplemanagement.co.uk/pm/articles/2012/09/unfair-dismissal-pay-outs-to-be-cut-says-cable.htm?utm_medium=email&utm_source=cipd&utm_campaign=pmdaily_140912&utm_content=news_1

Byline: Michelle Stevens

Scottish Government plan a new fund to increase number of women in science

First Minister Alex Salmond has announced a new £250,000 fund to boost the number of women choosing science and engineering as a career.

The Careerwise Scotland initiative aims to encourage girls to widen their future career choices by choosing the right subjects at school.

Mr Salmond also said he wanted his government to work with employers to create a more equal workforce.

But critics said the fund alone would not tackle male dominated work places.

Addressing Scotland's first women's employment summit on Wednesday, Mr Salmond said he wanted to address gender inequality in sectors like manufacturing, science and engineering.

He told the conference, which was jointly organised with the Scottish Trades Union Congress and held at Edinburgh's Our Dynamic Earth in Edinburgh: "It is vitally important that, from an early age, girls make the right subject choices at school to allow them to progress through education and training toward the widest range of job opportunities possible."

Sharing the platform with Mr Salmond was Youth Employment Minister Angela Constance.

She told the 150 delegates gathered that if a change in culture was to succeed, flexible early learning and childcare would play a key part.

Ms Constance said: "The perception that some jobs 'just aren't for women' must also be overcome if we are to create a level playing field for all. We want to hear about the real life experiences of women, both around the difficulties they've faced and the successes they've had."

She said she was keen to work with employers, public sector bodies and the trade unions to identify the obstacles still facing many women.

Commenting on the announcement of the fund, Scottish Liberal Democrat MSP Alison McInnes said she was disappointed the government was not doing more to work with employers and encourage flexible working hours, or to address male-dominated work cultures.

 

'Jobs for boys'

Ms McInnes claimed that although more girls were following typically male dominated career paths, the real barriers came when they tried to step into the world of work.

She added: "Only this month entrepreneur and Dragon Hilary Devey highlighted the problems faced by women trying to make it to the top of the career ladder.

"If the Scottish government is serious about opening up career opportunities for girls it should be engaging with women across Scotland and creating an action plan which tackles the real barriers faced by women in the workplace. It's time that work works for women."

A study by the Girlguiding Association in May this year found that certain careers - such as engineering - were being dismissed as "jobs for boys".

About one in six girls said they were put off an engineering career, because they did not know of many women who worked in the industry. The study added that young women "often conform to conventional - even stereotypical - career preferences".

Recently the Scottish government's Science and Engineering Advisory Group highlighted the need to support women into careers in the traditionally male dominated industries.

Atricle Source: http://www.bbc.co.uk/news/uk-scotland-scotland-politics-19571770