Scottish Key Facts
July 2015
SCOTLAND – THE BASICS
Population
5,347,600
Area
78,807
GDP
£139billion
Total GDP growth on year
2.8%
GDP per capita*
£26,100
Employment rate (16-64)
74.4%
Employment
2,624,000
Unemployment rate (16+)
5.9%
Unemployed
163,000
Av. Gross weekly wage (f/t) £518.20
SCOTLAND’S POPULATION
2014
km 2
2014, Q4
(2014, Q4)
(2014 Q4)
Feb-Apr
Feb-Apr
Feb-Apr
Feb-Apr
(2014)
Glasgow
Edinburgh
Aberdeen
Dundee
Stirling
Perth
Inverness
City
593,200
476,600
222,800
147,300
48,480
47,180
46,870
City region*
1,787,500
1,313,700
475,800
410,000
90,200
146,700
232,100
Sources: latest data from Mid 2014 population est and
Office for National Statistics. GDP Bulletin, Scottish
Government Quarterly National Accounts Scotland
(onshore figure)*, Labour Market briefing (June 2015)
Source: Mid-2012 Populations Estimates for Settlements and
Localities in Scotland (table 2A) and 2011 Census: First
Results on Population and Household Estimates for Scotland
- Release 1B
*City regions Aberdeen: Abdn & Aberdeenshire, Dundee:
Dundee, Angus, Perth&Kinross. Edinburgh: Edin, East&West
Midlothian,
Fife&Borders.
Glasgow:
Glasgow,
N&S
Lanarkshire, E&W Dunbartonshire, E.Ren&Renfrewshire,
Inverclyde. Inverness: Highland, Perth: Perth&Kinross,
Stirling: Stirling
EMPLOYMENT by BROAD INDUSTRY GROUP
SECTOR PROFILES
Agriculture, Forestry & Fishing
Mining, Quarrying & Utilities
Manufacturing
Construction
Motor Trades
Wholesale
Retail
Transport & Storage (inc Postal)
Accommodation & Food Services
Information & Communication
Finance & Insurance
Property
Professional, Scientific & Technical
Business Admin. & Support Services
Education
Health
Public Administration
Other
GDP at basic prices (GVA) £m 2011
Aerospace
444
Business Services
5863
Construction
5842
Creative industries (inc digital) 2813
Energy (inc renewable)
25923
Financial & Insurance
7638
Food and Drink
5159
Life Sciences
1549
Manufacturing
12018
Retail
6306
Shipbuilding
488
Spirits (inc whisky)
2227
Tourism related industries
2846
82
65
184
126
40
74
241
96
167
58
91
33
152
204
180
377
145
113
Source: Business Register and Employment Survey
(BRES), 2012 revised, Table 4 - Regional level
employment (thousands) by BIG (public/private sector
split)
2012
386
6414
5772
3068
23099
8208
4824
1601
11896
6135
462
2063
3240
Source: Scottish Government Growth Sector Database, Regional GVA
Income Approach (Dec 2014) (table 1.3).
This survey does not cover certain sectors, The sectors here are
defined as per Scottish Government sector definitions, which may
differ from Scottish Enterprise Industry definitions).
BUSINESSES IN SCOTLAND
The total number of private sector enterprises in Scotland was 335,015 at March 2014, a 2.4% decrease (8,090
enterprises) on March 2013. Large enterprises (250+ employees) accounted for 45.2% of private sector employment
and 62.1% of private sector turnover. SMEs in Scotland fell by 2.4% to 332,720 in March 2014, accounting for 99.3% of
all private sector enterprises, 54.8% of private sector employment and 37.9% of private sector turnover. Registered
private sector enterprises with ultimate ownership outside Scotland accounted for 3% of firms, 34.4% of employment, and
57.1% of turnover. The two largest sectors are ‘Professional, Scientific & Technical Activities’ and Construction. 15.6%
(52,160) of private sector enterprises were in the ‘Professional, Scientific & Technical Activities’ sector while 13.3%
(44,540) were in the Construction sector.
Source: Business in Scotland 2014 (November 2014); Scottish Government
Scottish Key Facts
Compiled by the Economic Research Team
July 2015
INNOVATION
Scottish Business Enterprise R&D (BERD) expenditure was
£798 million in 2013, which represented 0.6% of Scottish GDP
(compared to 1.06% in the UK). BERD expenditure in Scotland
is dominated by the Manufacturing sector (£467 million),
followed by the Services sector (£251 million) and then Other
sectors (£80 million), such as Extractive industries.
Expenditure on R&D by business as % of GDP, by
Government Office Region, 2013
Within the UK, the bulk of BERD expenditure takes place within
the South East (22.7%) and the East of England (22.1%)
regions. In terms of expenditure as a percentage of GDP,
Scotland ranked ninth out of the 12 UK regions/countries in
2013.
Scottish GERD, which comprises R&D undertaken by the
Business (BERD), Higher Education (HERD), Government
(GoveRD) and Private Non-Profit (PNP) sectors was £2,070
million in 2013, 7.2% of the UK total. In nominal terms, GERD
increased by 7.9% between 2012 and 2013. In real terms this
represents an increase of £111 million or 5.7%. GERD
(excluding PNP) was 1.55% of Scottish GDP in 2013; this
compares to 1.67% for the UK and 1.92% for the EU.
Source: Business Enterprise Research and Development Scotland
2013 (Dec 2014) Scottish Government and Gross Expenditure on
Research and Development Scotland 2013 (Apr 2015)
EXPORTS
The value of Scotland's international exports
(excluding oil and gas) stood at an estimated
£27.9 billion in 2013. This represents an increase
of £1.9 billion (7.2%) since 2012.
Scottish Export Performance 2013
Production/construction
(of which Manufacturing
Services
Agriculture/Forestry/Fishing
£billion
18.4
16.8)
9.2
0.3
Top Export Industries
Food & Drink
(of which Whisky
Oil and Gas supply chain*
Chemicals (incl. Petroleum Products)
Manuf of Machinery & Equipment
Manuf of Electronic & Optical Products
Financial & Insurance Services
£billion
5.0
4.3)
4.2
3.5
1.7
1.6
1.3
Top 5 Export Destinations
USA
Netherlands
Germany
France
Denmark
Total Exports by Destination Region
EU28
North America
Asia
Rest of Europe
Middle East
Africa
Central & South America
Other (unallocable)
Australasia
£billion
3.9
2.0
1.9
1.8
1.4
£billion
12.9
4.3
2.8
2.5
1.5
1.3
1.2
0.9
0.5
Source: Global Connections Survey 2013, Scottish
Government, Jan 2015, * Survey of International Activity in the
Oil & Gas Sector 2013-14 (direct only international sales)
HMRC
EDUCATION
Scotland has 19 autonomous higher education institutions (HEI) – 17 of these are universities (The SRUC and the Royal
Conservatoire are not universities but are classed as HEIs). This diverse range of HEIs includes 14 campus based
universities, one distance-learning university, an educational partnership institution based in the Highlands and Islands,
one art school, a conservatoire and an agricultural college. The Scottish Funding Council also funds 25 colleges. In 201314 there were 279,495 students in higher education in Scotland. Compared to 2012-13, total student numbers rose by
750 (0.3%). For higher education institutions (HEIs) as a whole, the number of students fell slightly by 145 (or 0.06%) to
230,805 in 2013-14. The number of students participating in HE in colleges however rose by 895 (1.9%) in 2012-13 to
48,690 in 2013-14. The number of Higher Education qualifiers from Scottish institutions has continued to rise, in the most
recent year by 1.9% (1,765 qualifiers) to 97,340 which is the highest level recorded. In 2013-14, there were 49,325
overseas students enrolled in HE courses at Scottish HEIs and Colleges representing an increase of 1,210 (or 2.5%) from
2012-13. The majority (55.5% or 27,375) of those overseas students came from outwith Europe, with China (7,865
students), the United States (3,945), and Germany (2,560). SFC invests around £1.6 billion in Scotland's colleges and
universities for teaching and learning, research and other activities in support of Scottish government priorities. SFC’s
total funding in the academic year 2015/16 for universities will be £1.04bn*, and for colleges will be £530.3m**.
Sources: Higher Education Students and Qualifiers at Scottish Institutions 2013-14 - Mar 2015 (SFC); *Outcome Agreements for
Universities Indicative Funding Decisions for AY 15-16 (SFC); **Outcome Agreements for Colleges Indicative Funding Decisions for AY
15-16 (SFC)
Scottish Key Facts
Compiled by the Economic Research Team
July 2015
SCOTLAND’S INDUSTRIES
CHEMICAL SCIENCES As one of Scotland's top exporters the chemical sciences sector makes a significant
contribution to the economy. International exports grew 27% between 2008-13 to £3.8bn equivalent to 13.8%
of international exports. Turnover was 8.7bn in 2011* Over 12,330 people are employed directly in the
industry base of 200+ companies supported by a steady flow of scientific and technical employees from
Scottish universities, higher education institutions and further education colleges. It is estimated that a total of
70,000 jobs in Scotland are dependent on the sector. World-scale companies such as INEOS, MacFarlan
Smith, FUJIFilm, CalaChem, BASF, GlaxoSmithKline and Syngenta have Scottish operations. Chemical
sciences research and development, focused on the development of new products and processes, accounts
for 18 per cent of Scottish business R&D (including Pharma). This is supported by Scotland’s world class
academic base and in particular ScotCHEM, the collaborative venture for the pooling and enhancement of
resources for chemistry research in Scotland, bringing together the major players in research in chemical
sciences. The nationwide Research Assessment Exercise (RAE 2014) determined that 80-95% of
researchers in Scotland’s top chemistry departments, WestCHEM & EastCHEM collaborations, Heriot-Watt
and Aberdeen, are classified as World class/Excellent. Analysis by publisher Elsevier highlighted that
Scotland has maintained a global top 3 spot in Chemical sciences research quality and output
*Turnover and GVA figures for 2012 are being reassessed as a result of large company
reclassifications/restructures, which follows a trend amongst multinational companies towards restructuring on
an international basis. Such restructuring has caused companies to be classified under different sectors to
those they have historically occupied, with movements from traditional production industries (in particular SIC
20 - Chemicals) towards wholesalers and toll processors (SIC 46 – Wholesale Trade)
CONSTRUCTION The construction industry encompasses a wide range of sub sectors and specialism’s; from
a supply chain of materials producers (timber, aggregates, cement/concrete etc), through component
producers (mechanical/ electrical, building products and construction systems), major, minor and specialist
contractors; to architecture/ design/finance/project management/engineering knowledge. In total there are
over 31,000 businesses (though less than 3000 employ more than 50 people, and only around 300/350 are of
significant scale), and it employs 170,000 people (10% of total Scottish jobs) in the construction sector itself,
and a further 38,000 people in its materials supply chain. The construction industry delivers £21.4bn (9%) of
Scotland’s GDP, and £8.7bn (10%) of Scotland’s GVA. Its supply chain delivers further significant GVA
impact (e.g. the timber supply chain delivers a further £1.1bn) Industry output “enables” a significant
proportion of other industries’ to contribute to the economy (e.g. via road/rail, built environment, or specialist
construction relating to energy, water, etc). Over the year, 4 quarters on 4 quarters, Scottish Construction has
grown by 6.3 % in output. Historically more than 60% of the industry’s turnover originates from the public
sector in various forms (infrastructure, social housing, and public buildings). The industry is spread
throughout Scotland, with particular concentrations in the central belt and north east, but significant
employment exists in all parts of Scotland, including all rural areas where these jobs are of particular
significance and importance. The industry’s dominant key market is the UK (with £1.1bn exported the rest of
the UK). Scotland has an international reputation for Architecture and Design, Value Engineering and Project
Management, and increasingly Low Carbon Products and Technologies, key markets include Western
Europe; Middle East; USA/Canada, and Eastern Europe; these account for £80m of (non UK) exports, with
significant potential for further future expansion in the medium term. The built environment accounts for
nearly 50% of all Scotland’s carbon/CO2 emissions, arising from a wide range of activities relating to the
construction and operation of buildings (encompassing extraction and processing of raw materials, production
& use of products & materials, site operations, as well as heating, lighting and running of buildings). In
addition, the industry is responsible for around 40% of all waste to landfill. Sustainable construction/low
carbon built environment are vitally important to the industry, to the Scottish economy and in delivering
Scotland’s low carbon targets. Business and public awareness and concern over rising energy costs,
environmental, planning and building standards considerations, and initiatives such as Scotland’s low carbon
targets and Green Deal will continue to demand increasing innovation in both products and systems –
creating a competitive advantage in other UK and international markets. Construction Scotland (the industry
leadership group) has launched an industry led construction Innovation centre, which will focus and deliver
HEI support/expertise and accelerate development of new construction products, systems and services by
businesses. Innovation demand, supported by Scotland’s HEI construction expertise, will deliver significant
Scottish Key Facts
Compiled by the Economic Research Team
July 2015
competitive advantage. It is estimated that up to 14,000 businesses in Scotland are already involved in Low
Carbon Built Environment activity.
CREATIVE INDUSTRIES This sector makes an important contribution to the Scottish economy employing
65,200 people, and contributes £2.8B GVA with a turnover of £4.9B. Scotland has world class companies in
all areas of the creative industries; from international leaders in games development and interactive platforms
to national broadcasters and successful production companies. Scotland has global centres of research
excellence which develop next generation technologies to support ongoing growth in the digital media
environment, and a well developed infrastructure to support company growth. SE’s key focus is on high
growth digital media. SE works with a Digital Media Industry Leadership Group and in partnership with
industry, government and the wider public sector. SE maintains close relationships with many key partners
and stakeholders; the Technology Strategy Board, the Creative Industries Knowledge Transfer Network,
Creative Scotland, trade bodies such as PACT, TIGA and Scottish Music Industry Association, the
broadcasters BBC/STV/Channel 4, and management and leadership development organisation, TRC Media.
SE also works with a number of academic institutions including Abertay University and Edinburgh’s School of
Informatics. Major projects include the ambitious Creative Clyde project which presents a unique opportunity
to build on the achievements of the Pacific Quay, Clyde Waterfront and Digital Media Quarter projects to
create a hub for one of the fastest growing sectors in the economy. District 10 is an infrastructure project at
Seabraes yard in Dundee that uses shipping containers to build affordable office accommodation aimed at
early stage creative industry companies. Interactive Scotland has been developed by Scottish Enterprise to
drive growth in the sector and support the industry strategy across Scotland.
TECHNOLOGY & ENGINEERING includes high-value manufacturing, advanced materials, software,
electronics, sensors and photonics. There are nearly 10,000 technology and engineering companies in
Scotland employing 155,000 people in total. Examples of leading companies in the sector include Rolls
Royce, BAE Systems, Lockheed Martin, Oracle, Alexander Dennis, Selex ES, Thales and Cirrus Logic.
Annually the sector generates turnover of £24.4bn, including exports of £8bn, contributing a gross value
added (GVA) of £11.2bn to the Scottish economy. Its highly skilled workforce produces £72,309 GVA per
head, well above the Scottish average. The capabilities of the sector are diverse but there are clusters around
rugged engineering, data capture, real world interfaces and informatics: capabilities which also support the
growth and development of Scotland’s other sectors. Key application markets include oil and gas, renewable
energy, aerospace, defence and marine. In addition, there is a strong focus on addressing new opportunities
in digital health and care, sensor systems, big data, smart mobility and subsea engineering. New Innovation
Centres are connecting world-class academic research to industry, such as the Digital Health Institute,
CENSIS for Sensor and Imaging Systems and the Data Lab for big data applications. These complement
established facilities including the Advanced Forming Research Centre, part of the UK High Value
Manufacturing Catapult. The development of the sector is championed through the work of Scotland's
Technology Advisory Group (TAG).
AEROSPACE, DEFENCE AND MARINE (ADM) forms a major cluster within the Technology and Engineering
sector in Scotland involving around 750 companies and employing nearly 38,500 staff. Scotland has a strong
background in advanced engineering, including R&D, design and manufacturing. AD&M is a key high
technology sector, with an experienced skills base. AD&M sales in 2012 were over £5.5 billion. The industry
generates a GVA to the Scottish economy of around £1.8 billion. The Scottish AD&M sector includes a
number of global industry companies, including defence companies such as SELEX-ES, Thales, Raytheon
and BAE Systems and aerospace manufacturing and MRO (maintenance, repair and overhaul) companies
such as Rolls-Royce, Spirit AeroSystems, GE Aviation, UTC, Woodward, Teledyne and Vector Aerospace. In
addition there is a growing range of Scottish-owned companies in the aerospace and defence sectors, as well
as world leading niche players in the Space industry, such as Clyde Space and Star Dundee. Scotland’s
Shipbuilding and ship repair sector represents over 40% of the UK industry and is focused primarily on the
manufacture and support of naval ships and specialist, more complex vessels for niche markets, as well as
being home to a thriving marine design community. The main companies are BAE Systems Maritime - Naval
Ships and Babcock Marine. Scotland's marine companies, which include a wide range of marine supply chain
companies such as Rolls-Royce Marine and MacTaggart Scott, employ 22,000 people. The Glasgow area
also remains a leading world centre for commercial ship management and Scotland continues to be the main
source of officers for the UK Merchant Navy.
ENERGY & LOW CARBON TECHNOLOGIES incorporates oil and gas, thermal generation, renewables,
environmental activity and the emerging low carbon industries. Encompassing over 3,000 businesses in
2012, of which around 2,000 are in oil and gas, ranging from multinationals, large Scottish global companies
Scottish Key Facts
Compiled by the Economic Research Team
July 2015
and a highly regarded SME base. The sector remains a vital contributor to the Scottish economy. 2012
estimates for energy in Scotland put the GVA for total energy at £23.1 billion. In 2014, total UK expenditure in
oil & gas reached £26.5 billion with capital expenditure reaching a record £14.8 billion. Capital expenditure
levels are expected to decrease in 2015 to £11.3 billion, with total expenditure predicted around £22 billion.
According to DECC, 70% of the UK’s energy will still come from Oil and Gas in 2030. Scottish employment
figures for each sub-sector are based on conservative estimates of roughly 200,000 for oil and gas which
includes onshore and offshore activities as well as wider supply chain employment; 10,000 in thermal
generation; 11,700 for renewables and 34,000 for environmental and low carbon activity. The number of
companies active in each sub-sector is estimated at around 2,000 in oil and gas; over 200 in thermal
generation, over 500 in renewables, and 600 in environmental and low carbon activity. The Climate Change
(Scotland) Act 2009 sets a target of an 80% reduction in greenhouse gas emissions by 2050, a significant
proportion of which will be met by decarbonising Scotland’s electricity supply. The Scottish Government’s
Routemap for Renewable Energy in Scotland sets ambitious goals to meet 100% of Scotland's own electricity
demand from renewable resources by 2020 and to largely decarbonise the country’s electricity supply by
2030. Scotland is making steady progress towards these goals and met 44.4% of its own electricity demand
from renewables in 2013 (accounting for the fact that 27.9% of all electricity generated was exported). The full
breakdown of electricity generated in 2013 was: 34.9% nuclear, 32% renewables, 20.6% coal, 10.8% gas,
1.7% oil & other. Investment in renewables was £1.166bn in 2013. Provisional figures for 2014 indicate that
49.6% of Scotland’s electricity demand was met by renewable sources. The Skills Investment Plan for Energy
indicates there is likely to be demand for up to 40,000 jobs in renewable heat and electricity generation by
2020. Therefore, maintaining Scotland's oil and gas industry, boosting renewable energy and the application
of low carbon technologies will make a significant and important contribution to a sustainable economy.
FINANCIAL & BUSINESS SERVICES Financial and Business Services (F&BS) in Scotland employed a total
of 215,200 in 2013, 85,400 in the financial services sector and 129,800 in the business services sector.
F&BS contributes to a number of drivers of economic growth. The financial services sector contributed
£7.5bn to the Scottish economy in 2011, while the business services sector contributed £6.4bn in 2012. In
addition, the financial services sector accounts for 5.4% of overseas exports. Scotland is internationally
recognised as the most complete financial centre in the UK outside London and the South East, and is
increasingly recognised globally as an internationally competitive destination and attractive place for F&BS
companies to locate and expand. Many of the world’s leading financial services firms have operations in
Scotland across each of the sub-sectors of the industry including:- Asset Management and Servicing:
(Aberdeen Asset Management, Bank of New York Mellon, CitiGroup, BNP Paribas), Banking (Lloyds Banking
Group, Royal Bank of Scotland, Tesco Bank), General Insurance (Aviva, Direct Line, Esure), Life and
Pensions (Aegon UK, Prudential Standard Life).
FOOD & DRINK
Currently being reviewed
FOREST AND TIMBER TECHNOLOGIES This carbon-positive sector incorporates the growing of tree
seedlings within nurseries to the planting, managing and harvesting of forests plus value-added downstream
activities such as sawmilling, pulp and paper production, and panel and board manufacturing. It also includes
the development and production of higher value goods such as engineered sustainable construction products
and businesses that serve the Energy and Tourism markets. Half of the UK’s forests are in rural Scotland,
covering 17% of Scotland’s land area (target 25% by 2050) and as a result, the sector supports many rural
communities. The sector consists of 1,700 businesses contributing £1bn in GVA to the Scottish economy
employing around 50,000 people. Demand for good quality timber has recently increased according to a
report from Bidwells. However 80% of our timber is imported, which has led to the suggestion that more
landowners use land for commercial forestry. A recent report from SAC Consulting also highlighted that the
economic impact of forestry compared to farming is three times greater without subsidies
LIFE SCIENCES Scotland is home to one of the most sizable clusters in Europe, with a significant
international presence including Charles River Laboratories, Thermo Fisher, GSK, Johnson & Johnson,
Millipore, and ClinTec. Latest Scottish Government figures for 2012 show company turnover in excess of £3.2
billion and GVA of £1.6 billion. From 2010 to 2012 number of companies has increased by 7%, industrial
employment by 6%, turnover by 6% and GVA by 3%. With over 600 organisations (ranging from Higher
Education Institutions to companies), the sector employs more than 30,000 (2012). Scotland’s two stronger
subsectors in terms of industrial employment and turnover are medical technologies and pharmaceutical
services. Scotland is also at the forefront of research in regenerative medicine, precision medicine and
Scottish Key Facts
Compiled by the Economic Research Team
July 2015
animal health. In addition, there are a number of emerging areas where Scotland has been building strength
including connected health, agritech (crop research, aquaculture) and industrial biotechnology. Edinburgh
BioQuarter is a keystone investment at the heart of Scotland’s national life science strategy, bringing together
public healthcare, academic research and extensive commercial laboratory space in one location to
accelerate translational medicine and facilitate large scale life science collaborations.
TEXTILES The Scottish textile industry today is flexible, innovative and market driven - producing for fashion,
interior and performance markets in over 150 countries. Some of the world leaders in luxury and performance
textiles are based in Scotland - taking advantage of niche and premium markets where Scottish product is
considered to offer higher levels of both quality and authenticity. Companies such as W.L. Gore &
Associates (UK) Limited (manufacturer of the world famous GORE-TEX® fabric), Bute Fabrics (interior fabric
manufacturers for airports all over the world) and Mackintosh (manufacturers of world-renowned
contemporary, rainwear) all choose Scotland. There are over 540 textile companies in Scotland, employing
8,400 people, textile exports are valued at over £365m and the Scottish textile sector is worth £835m to the
Scottish economy
TOURISM is an important sector for the Scottish economy and in 2014 generated £4.7bn overnight visitor
spend with an estimated further £4.7bn spent on leisure day trips by residents and attracted over 15m
visitors. Overseas tourists increased by 11% in 2014 and spent £1.84bn, 10% more than the year before
emphasising the value in attracting these visitors. Scotland’s top five international markets in terms of volume
are USA, Germany, France, Australia and Netherlands and the top five growth markets in terms of volume in
2014 were Sweden, Poland, Turkey, USA and Norway. The sector makes a major contribution to employment
levels across a wide range of occupations, age groups and skills sets with 211,200+ jobs supported by 14,000
tourism related businesses in Scotland which is 8.5% of Scottish employment. Jobs in tourism are particularly
important in non-urban communities where often as many as 15% of the population work in the sector. The
sector directly influences Scotland’s international profile and premium market image and provides major
support to other key sectors such as Food and Drink, Retail, Transport and Construction.
Scottish Key Facts
Compiled by the Economic Research Team
July 2015