Scottish Key Facts
May 2014
SCOTLAND – THE BASICS
Population
5,295,403
Area
78,807
GDP
£129billion
Total GDP growth on year
1.6%
GDP per capita*
£24,300
Employment rate (16-64)
73.5%
Employment
2,585,000
Unemployment rate (16+)
6.4%
Unemployed
178,000
Av. Gross weekly wage (f/t) £508.00
SCOTLAND’S CITIES - POPULATION
2011
km 2
2013, Q4
(2013, Q4)
(2013 Q4)
Jan-Mar
Jan-Mar
Jan-Mar
Jan-Mar
(2013)
Sources: latest data from Scottish Census 2011 &
Office for National Statistics. GDP Bulletin, Scottish
Government Quarterly National Accounts Scotland
(onshore figure)*, Labour Market briefing (May 2014)
EMPLOYEE JOBS BY INDUSTRY
Agriculture, Forestry & Fishing
Mining/Quarrying Industries
Manufacturing
Electricity, Gas, Steam & Air con.
Water supply/sewerage/waste
Construction
Retail & Wholesale
Transport & Storage
Accommodation & Food Service
Information & Comms.
Financial & Insurance activities*
Real Estate
Prof. scientific & technical activities
Admin & support services
Public admin & defence
Education
Human health & social activities
Arts, entertainment & recreation
Other Services
Total Services
All Jobs
Glasgow, City
Edinburgh, City of
Highland*
Aberdeen City
Dundee City
Stirling
Perth & Kinross
*Inverness population estimates not
Highland Council covering this area
593,200
476,600
232,100
222,800
147,300
90,200
146,700
available due to
Source: Table 2 - Census day usually resident population by
council area, 2011, Statistical Bulletin IB, Scotland’s Census
2011; Please note population data is rounded to nearest
hundred so figures may not add exactly because of rounding.
SECTOR PROFILES
65
38
203
14
16
171
376
113
182
68
97
45
184
221
151
198
385
76
59
2158
2665
GDP at basic prices (GVA) £m 2010
Aerospace
404.1
Construction
6153.7
Retail
5939.5
Shipbuilding
487.8
Spirits (inc whisky)
2073.0
Manufacturing
12500
Food & Drink
4726.7
Life Sciences
1638.2
Energy (inc renewables)
24546.2
Tourism related industries
2904.1
Creative industries (inc digital) 2708.8
2011
458.3
6111.4
6609.0
479.3
2646.6
12730.1
5497.3
1636.8
27401.2
3090.7
2827.3
Source: Scottish Government Growth Sector Database
This survey does not cover certain sectors, in particular
financial services, which is worth an estimated £7bn. The
sectors here are defined as per Scottish Government
sector definitions, which may differ from Scottish
Enterprise Industry definitions)
Please note that a chemicals profile has not been produced
for SIC codes 20 & 21, see Scottish Government website for
further details.
Source: ONS, workforce jobs by region and industry
(Dec 2013). (thousands, seasonally adjusted) SIC
code 2007 *includes nationalised banks
BUSINESSES IN SCOTLAND
The total number of private sector enterprises in Scotland was 343,105 at March 2013, a 0.5% increase (1,745
enterprises) on March 2012. Large enterprises (250+ employees) accounted for 45.3% of private sector employment
and 63.3% of private sector turnover. SMEs in Scotland increased by 0.5% to 340,840 in March 2013, accounting for
99.3% of all private sector enterprises, 54.7% of private sector employment and 36.7% of private sector turnover.
Registered private sector enterprises with ultimate ownership outside Scotland accounted for 3.1% of firms, 35.2% of
employment, and 58.1% of turnover. The two largest sectors are Construction and ‘Professional, Scientific & Technical
Activities’. 14.5% (49,655) of private sector enterprises were in the Construction sector while 15.1% (51,915) were in the
‘Professional, Scientific & Technical Activities’ sector.
Source: Business in Scotland 2013 (October 2013); Scottish Government
Scottish Key Facts
Compiled by the Economic Research Team
May 2014
INNOVATION
Scottish Business Enterprise R&D (BERD) expenditure was
£707 million in 2012, which represented 0.59% of Scottish GDP
(compared to 1.09% in the UK). BERD expenditure in Scotland
is dominated by the Manufacturing sector (£462 million),
followed by the Services sector (£180 million) and then Other
sectors (£65 million), such as Extractive industries.
Within the UK, the bulk of BERD expenditure takes place within
the South East (23.9%) and the East of England (20.2%)
regions. In terms of expenditure as a percentage of GDP,
Scotland ranked eighth out of the 12 UK regions/countries in
2012.
Scottish GERD, which comprises R&D undertaken by the
Business (BERD), Higher Education (HERD), Government
(GoveRD) and Private Non-Profit (PNP) sectors was £1,922
million in 2012, 7.1% of the UK total. In nominal terms this is the
same amount as was reported in 2011, whilst in real terms this
represents a decrease of £34 million or 1.7% since 2011.
GERD (excluding PNP) was 1.58% of Scottish GDP in 2012;
this compares to 1.72% for the UK and 1.97% for the EU.
Source: Business Enterprise Research and Development Scotland
2012 (Jan 2014) Scottish Government and Gross Expenditure on
Research and Development Scotland 2012 (Mar 2014)
EXPORTS
The value of Scotland's international exports
(excluding oil and gas) stood at an estimated £26
billion. This represents an increase of £1.4 billion
(5.9%) since 2011.
Scottish Export Performance 2012
Production/construction
(of which Manufacturing
Services
Agriculture/Forestry/Fishing
£billion
17.0
15.4)
8.7
0.3
Top Export Industries
Food & Drink
(of which Whisky
Chemicals (incl. Petroleum Products)
Oil and Gas supply chain*
Financial & Insurance Services
Manuf of Machinery & Equipment
Manuf of Electronic & Optical Products
£billion
4.7
3.9)
4.5
3.7
1.4
1.3
1.1
Top 5 Export Destinations
USA
Netherlands
France
Germany
Norway
Total Exports by Destination Region
EU27
North America
Asia
Rest of Europe
Middle East
Africa
Other (unallocable)
Central & South America
Australasia
£billion
3.6
2.7
2.2
1.5
0.9
£billion
11.7
3.9
2.7
2.5
1.2
1.2
1.2
1.1
0.5
Source: Global Connections Survey 2012, Scottish
Government, Jan 2014, * Survey of International Activity in the
Oil & Gas Sector 2012-13 (direct only international sales)
HMRC
ACADEMIC ACHIEVEMENT
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 37 colleges. In 201213 there were 278,765 students in higher education in Scotland. Compared to 2011-12, total student numbers fell by
2,865 (1%). For higher education institutions (HEIs) as a whole, the number of students fell by 2,040 (or 0.9%) to 230,970
in 2012-13. The number of students participating in HE in colleges also fell, by 825 (1.7%) 2011-12 to 47,795 in 2012-13.
The number of Higher Education qualifiers from Scottish institutions has continued to rise, in the most recent year by 2.9%
(2,710 qualifiers) to 95,580 which is the highest level recorded. In 2011-12, there were 48,115 overseas students enrolled
in HE courses at Scottish HEIs and Colleges representing an increase of 1,170 (or 2.4%) from 2011-112. The majority
(56.8% or 27,335) of those overseas students came from outwith Europe, with China (8,445 students), the United States
of America (3,790), and India (2,250). 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 2014/15 for universities will be £1.07bn*, and for colleges will be £526.3m**.
Sources: Higher Education Students and Qualifiers at Scottish Institutions 2012-13 - Mar 2014 (SFC); *Outcome
Agreements for Universities Indicative Funding Decisions for AY 14-15 (SFC); **Outcome Agreements for Colleges
Indicative Funding Decisions for AY 14-15 (SFC)
Scottish Key Facts
Compiled by the Economic Research Team
May 2014
SCOTLAND’S INDUSTRIES
CHEMICAL SCIENCES As one of Scotland's top exporters the chemical sciences sector makes a significant
contribution to the economy. Sector exports grew 50% between 2008 and 2012 to £4.5bn, equivalent to
17.3% of international exports, sector turnover was £8.7bn. Over 13,500 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, DOW, FUJIFilm, CalaChem, BASF, GlaxoSmithKline and Syngenta have Scottish operations. The
chemicals sector accounts for 28% of Scottish manufacturing by turnover. 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) recognised that four of the UK’s top 10 research departments are in
Scotland, including WestCHEM and EastCHEM collaborations. RAE determined EastCHEM, the research
collaboration between Edinburgh and St Andrews Universites, had the best chemistry faculty power rating in
Britain.
CONSTRUCTION Touches every part of Scotland’s economy, communities and society. As one of the
country’s largest sectors, it is of major economic importance, acting as an enabler and engine of growth
across the economy and key sectors. Its breadth encompasses professions such as architecture, civil
engineering, housing, construction products, raw materials and an extensive range of sub contractors.
Employing around 172,000 people (10% of Scottish jobs), with 31,000 businesses and contributing £8.7bn in
GVA (10% of total GVA) to the Scottish economy, the sector is particularly significant in Glasgow, Aberdeen
City, Aberdeenshire, Edinburgh and Lanarkshire. The Scottish construction sector has continued to grow with
construction orders rising in part boosted by increases in new home registrations. Key to this continued
growth in the Scottish construction sector is public and private sector house building, showing that the
governments “Right to Buy” scheme has increased confidence throughout the sector. Scottish construction is
starting to recover from the decline during the recession.
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 the Technology
Strategy Board, the Creative Industries Knowledge Transfer Network, Creative Scotland, PACT, TRC Media,
BBC and Channel 4. 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. Creative Edge is an international
development programme targeted at digital media companies within the TV and broadcast sectors, delivered
by TRC Media in partnership with SE, Channel 4 and Creative Scotland. Interactive Scotland has been
developed by Scottish Enterprise to drive growth in the sector and support the industry strategy
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 150,000 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 £6.5bn, contributing a gross value
Scottish Key Facts
Compiled by the Economic Research Team
May 2014
added (GVA) of £10.4bn to the Scottish economy. Its highly skilled workforce produces £69,565 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 and smart mobility. 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 recently announced Data Lab. These complement established facilities
including the Advanced Forming Research Centre, part of the UK High Value Manufacturing Catapult. The
development of the sector is ably supported 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 2,520 businesses in
2012, of which 2000 are in Oil and gas, ranging from multinationals, large Scottish global companies and a
highly regarded SME base. The sector remains a vital contributor to the Scottish economy. 2011 estimates
for energy in Scotland put the GVA for total energy at £27.4 billion, an increase of 11.6% on 2010 of which
£15.4bn is attributed to oil and gas (including UKCS). Capital expenditure in 2013 reached £14,4 billion with
£13,5 billion expected in 2014. Currently, oil and gas provide 73% of the UK’s total primary energy, while
production from the UKCS satisfies 49% (68% of oil demand and 58% of gas demand). According to DECC,
70% of the UK’s energy will still come from Oil and Gas in 2030. Scottish employment figures for each subsector are based on conservative estimates of roughly 196,000 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 1,000 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 40.3% of its own electricity demand from renewables in 2012
(accounting for the fact that 26% of all electricity generated was exported). The full breakdown of electricity
generated in 2012 was: 34.4% nuclear, 29.8% renewables, 24.9% coal, 8% gas, 2.8% oil & other. Investment
in renewables was £1.547bn in 2012. 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 Scotland has a distinguished history in financial services that dates
back over 300 years. It is one of Europe’s leading financial centres and the second largest international
financial hub in the UK. The sector employs nearly 85,000 people and together with the professional services
sector (legal, accountancy and management consultancy) contributes 13.1% to the nation’s economy. The
Scottish Key Facts
Compiled by the Economic Research Team
May 2014
strength of Scotland’s financial services industry lies in its diversity, it is a leading centre for banking,
pensions, insurance, asset management and servicing and professional services. Many UK and international
companies have sizeable operations in Scotland, including Lloyds Banking Group, HSBC, Barclays, JP
Morgan, Morgan Stanley, Citi Group and many more. Scotland is also home to the headquarters for Royal
Bank of Scotland, Clydesdale Bank, Tesco Bank, Virgin Money, Standard Life and Aegon UK. In the ranking
of financial and professional services employment amongst the 650 UK parliamentary constituencies,
Glasgow Central ranks 3rd for employment and 1st for GVA outside London. Glasgow has particular strengths
in insurance, legal services and accountancy – the number of accountants employed in the city is second only
to London and noticeably higher than Birmingham and Manchester. Edinburgh is an important international
financial centre, with a strong presence in banking, pensions and investment management activities.
FOOD & DRINK Taking the whole supply chain into account, from agriculture, fishing, aquaculture through to
the manufacturing base, Scotland's food and drink sector makes a significant contribution to the economy in
terms of employment (116,000 jobs), turnover (£13.1bn) and GVA (£5.5bn). Scotland's food and drink
manufacturing sector alone has annual sales of £9.8bn and around 44,000 direct jobs - over 20% of
Scotland's manufacturing employees. GVA from the food and drink manufacturing sector is £4.3bn which
makes it the largest contributor to manufacturing GVA in Scotland. Exports totalled £5.3bn in 2013, with drink
exports continuing to account for the majority - 80% (by value) of Scotland’s total food and drink exports. Top
Scottish companies include AG Barr, First Milk and Walkers shortbread. The industry is also linked to
Scotland’s growing tourism sector.
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. Currently, demand has been depressed in the timber market which may be
due to poor weather and market conditions. The recent Grown in Britain report has seen 17 of the largest
construction companies in the UK commit to British timber procurement. This has contributed to the domestic
timber market share reach 40%, which is unprecedented in modern times.
LIFE SCIENCES Scotland is home to the second largest life science cluster in the UK and 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.
The latest figures for the Scottish life
sciences industry show that company turnover has increased by 5% to £3.2 billion in 2011 compared to 2010.
The figures also show that GVA remained stable at £1.6 billion compared to 2010. With some 650
organisations (ranging from Higher Education Institutions to companies), the sector employs about 35,000
(2011). 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 Stem cell and
regenerative medicine and animal health. In addition, there are a number of emerging areas where Scotland
has been building strength including health informatics, 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 570 textile companies in Scotland, employing
over 10,000 people, textile exports are valued at over £375m and the Scottish textile sector is worth £956m to
the Scottish economy.
TOURISM Tourism is vital to Scotland, with overnight visitors generating in the excess of £4.5bn annually and
day visitors contributing a further £6.2bn. Last year alone Scotland attracted 14.5m domestic and
international visitors. People from within the UK account for the majority of tourism volume and value in
Scottish Key Facts
Compiled by the Economic Research Team
May 2014
Scotland. However, whilst overseas residents account for only 15.2% of the total number of tourism trips
taken in Scotland, they account for 36.7% of total spend, underlining the value of attracting these visitors.
Recent figures have shown that USA, Germany, France, Australia and Netherlands are the top five markets
for Scotland while good growth has been seen in recent years from markets such as Spain and Italy. The
months of July to September are the most popular for holidays in Scotland amongst both UK and overseas
visitors. However, business trips are more evenly spread throughout the calendar year and business tourists
spend on average 50% more than leisure tourists making business tourism a significant component of the
Scottish tourism market.
Scottish Key Facts
Compiled by the Economic Research Team
May 2014