Scottish Keyfacts
February 2014
SCOTLAND – THE BASICS
Population
5,295,403
Area
78,807
GDP
£128billion
Total GDP growth on year**
2.1%
GVA per head*
£20,013
Employment rate (16-64)
72.8%
Employment
2,556,000
Unemployment rate (16+)
7.1%
Unemployed
195,000
Av. Gross weekly wage (f/t) £498.30
SCOTLAND’S CITIES - POPULATION
2011
km 2
2013, Q3
(2013, Q3)
(2012 est)
Oct-Dec
Oct-Dec
Oct-Dec
Oct-Dec
(2012)
Sources: latest data from Scottish Census 2011 &
Office for National Statistics. * GVA is sourced from
ONS Statistical Bulletin: Regional Gross Value Added
(Income Approach), December 2013 and **GDP
Bulletin, Scottish Government, Quarterly National
Accounts Scotland, Labour Market briefing (Feb 2014))
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.
EMPLOYEE JOBS BY INDUSTRY
SECTOR PROFILES
Agriculture, Forestry & Fishing
60,000
Mining/Quarrying Industries
37,000
Manufacturing
199,000
Electricity, Gas, Steam & Air con.
14,000
Water supply/sewerage/waste
16,000
Construction
170,000
Retail & Wholesale
370,000
Transport & Storage
114,000
Accommodation & Food Service
178,000
Information & Comms.
73,000
Financial & Insurance activities*
98,000
Real Estate
43,000
Prof. scientific & technical activities
186,000
Admin & support services
216,000
Public admin & defence
152,000
Education
196,000
Human health & social activities
377,000
Arts, entertainment & recreation
77,000
Other Services
59,000
Total Services
2,142
All Jobs
2,637,000
Source: ONS, workforce jobs by region and
industry (Sept 2013). SIC code 2007
*includes nationalised banks
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
1638.8
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
1638.2
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.
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
Compiled by Economic Research Team, Scottish Enterprise, Atrium Court, 50 Waterloo St, Glasgow, G2 6HQ
February 2014
INNOVATION
Scottish Business Enterprise R&D (BERD) expenditure
was £689 million in 2011, which represented 0.56% of
Scottish GDP (compared to 1.14% in the UK).
Scotland ranked in 8th place out of 12 government office
regions in 2011 for total R&D expenditure and R&D
expenditure relative to GDP. Expenditure in Scotland in
2011 increased by 8.3% in real terms compared to 2010,
slightly above the UK increase of 6.0%.
Scottish GERD, which comprises R&D undertaken by the
Business
(BERD),
Higher
Education
(HERD),
Government (GoveRD) and Private Non-Profit (PNP)
sectors was £1,934 million in 2011, an increase in real
terms of 1.2% (£22 million) since 2010. The gap between
Scottish R&D spending and EU R&D spending slightly
widened over the latest year. In 2011, Scottish GERD
was 1.56% of GDP; compared to 1.94% for the EU. The
gap in 2011 was 0.37 percentage points, compared to a
gap of 0.36 percentage points in 2010.
Source: R&D Business Expenditure, Dec 2012, Scottish Government
and Gross Expenditure on Research and Development Scotland 2011,
Mar 2013
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
Oil and Gas supply chain*
Food & Drink
(of which Whisky
Chemicals (incl. Petroleum Products)
Financial & Insurance Services
Manuf of Machinery & Equipment
Manuf of Electronic & Optical Products
£billion
2.4
4.7
3.9)
4.1
1.4
1.3
1.1
Top 5 Export Destinations
USA
Netherlands
France
Germany
Norway
£billion
3.6
2.7
2.2
1.5
0.9
Total Exports by Destination Region
EU27
North America
Asia
Rest of Europe
Middle East
Africa
Other (unallocable)
Central & South America
Australasia
£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 2011-12 (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 201112 there were 281,630 students in higher education in Scotland. Compared to 2010-11, total student numbers fell by
8,370 (2.9 per cent). For higher education institutions (HEIs) as a whole, the number of students fell by 5,635 (or 2.4 per
cent) from 238,645 in 2010-11 to 233,010 in 2011-12. The number of students participating in HE in colleges also fell, by
2,735 (5.3 per cent) from 51,355 in 2010-11 to 48,620 in 2011-12. The number of Higher Education qualifiers from
Scottish institutions has continued to rise, in the most recent year by 2.6 per cent (2,390 qualifiers) to 92,870 which is the
highest level recorded. In 2011-12, there were 46,970 overseas students enrolled in HE courses at Scottish HEIs and
Colleges representing an increase of 1,320 (or 2.9 per cent) from 2010-11. The majority (58.7 per cent or 27,540) of those
overseas students came from outwith Europe, with China (8,075 students), the United States of America (3,650) and India
(2,970). 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 for colleges in academic year 2011/12 will
be £577.6m which is a decrease of £108.6m from 2010/11.
Sources: Higher Education Students and Qualifiers at Scottish Institutions 2011-12 (March 2013); Scottish Funding
Council, Facts & Figures: The 2012 at a glance guide to the Scottish Funding Council, Funding & Outcomes; Scottish
Funding Council
Compiled by Economic Research Team, Scottish Enterprise, Atrium Court, 50 Waterloo St, Glasgow, G2 6HQ
February 2014
SCOTLAND’S INDUSTRIES
CHEMICAL SCIENCES
This section is currently being updated.
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
leading in to Q4 with construction orders rising to their highest level in 7 years and a 21% increase 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, Amor, Oracle, Alexander Dennis, Selex ES, Thales and Wolfson. Annually the sector
generates turnover of £24.4bn, including exports of £6.5bn, contributing a gross value 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 worldclass academic research to industry, such as the Digital Health Institute and CENSIS for Sensor and Imaging
Systems. 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
Compiled by Economic Research Team, Scottish Enterprise, Atrium Court, 50 Waterloo St, Glasgow, G2 6HQ
February 2014
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 2012 reached £11,4 billion with a
record of £13,5 billion expected in 2013. 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
sub-sector 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
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
Compiled by Economic Research Team, Scottish Enterprise, Atrium Court, 50 Waterloo St, Glasgow, G2 6HQ
February 2014
makes it the largest contributor to manufacturing GVA in Scotland. Exports totalled £5.3bn in 2012. The
Scottish spirits sector accounts for 80% of UK spirits turnover and 90% of UK spirits GVA. 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, Life
Technologies (acquired by 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, while total employment by life sciences companies in Scotland increased by 2% to
reach 24,400 in the same period. 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 approx. 600 textile companies in Scotland,
employing over 10,000 people and textile export values remains high, bringing approx £956m into the Scottish
economy.
TOURISM In 2012, almost 15 million overnight tourism trips were taken in Scotland for which visitor
expenditure totalled £4.3 billion. People from within the UK account for the majority of tourism volume and
value in Scotland. However, whilst overseas residents account for only around 15% of the total number of
tourism trips taken in Scotland, they account for 32% of total visitor spend, underlining the value of attracting
these visitors. USA, Germany, France, Netherlands and Ireland are major 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.
Compiled by Economic Research Team, Scottish Enterprise, Atrium Court, 50 Waterloo St, Glasgow, G2 6HQ
February 2014