Productivity in Scotland lags its key competitors
Productivity is a measure of how well an economy uses resources to produce output and is a fundamental determinant of international competitiveness and living standards. Improving an economy’s productivity performance is important to create sustainable economic growth, wages and living standards over the longer term.
Improving Scotland’s productivity is central to achieving the twin aims of Scotland’s Economic Strategy (SES): improving economic competitiveness and tackling inequality. Each of the four priorities for growth identified in the SES – Investment, Innovation, Inclusive Growth, and Internationalisation – have important roles in helping improve Scotland’s productivity performance.
Comparing Scotland’s Productivity – Latest published data at Feb 2018
In 2016 Scotland was ranked in 19th place (out of 36 countries) for productivity levels amongst OECD countries, placing Scotland in the third quartile. Since the baseline position of 2006, Scotland’s productivity rank has worsened. Between 2007 and 2009 it fell to 19th, before rising to 18th between 2010 and 2011. Since 2012 Scotland’s productivity rank has remained static at 19th.
In real terms Scottish productivity has improved by less than 10% in the last ten years.
What is the Government’s role in improving productivity? Scotland’s Economic Strategy identifies actions under each of the four priority areas for growth that will help to improve Scotland’s productivity performance, including:
Investing in Scotland’s infrastructure
Developing Scotland’s digital infrastructure and skills
Improving educational attainment
Developing Scotland’s young workforce
Encouraging workplace innovation and improving the quality of workplaces
Supporting enterprise, innovation and business growth
Supporting innovative collaborations between businesses, universities and others
Promoting fair work and inclusive workplaces
Helping Scottish businesses to grow and compete internationally
Extracted from the gov.scot website posted Feb 2018
My Comment
What we now need are real, positive actions to stimulate business investment, develop the necessary skills, capitalise on innovation and create more manufacturing jobs rather than in the increasingly dominant service sector.