ECONOMIC ANALYSIS
Strengths
(using latest available data)
The employment rate in Glasgow has increased every year since 2018 and is now at
69.6%
The economic inactivity rate has decreased year on year between
2017-2020 from 30.1% to
From 2019 to 2020,
the number of economically inactive individuals fell by
R&D spending in Glasgow in 2019 increased and was significantly higher than the level of R&D spending recorded at a national level in Scotland
R&D spending in Glasgow was £347.5 per head of population whereas in Scotland it was £204.7 per head of population
Glasgow’s total output (GVA) was
£22.8 billion in 2019
Glasgow’s GVA has increased every year since 2010
Glasgow has a higher graduate level workforce than the national averages of Scotland and the UK with
51.7%
of the working age population educated to degree level – the second highest of the UK Core Cities
of people who graduate from a Glasgow higher education institution choose to stay in the city
67.1%
of Glasgow’s residents are employed in quality work,
higher than the national averages of Scotland
and the UK
Since 2005 we have successfully managed to grow our economy whilst also reducing carbon emissions
Glasgow’s business count has increased every year since 2013
Most recent figures for 2021 show there are currently
enterprises in Glasgow
The unemployment rate in Glasgow remained the same in 2020 as it was in 2019 at
4.7%
(the lowest level since unemployment estimates began in 2004)
We have a strong reputation of holding major conventions,
most recently the
United Nations COP26 Conference
Glasgow has a large talent pool
nearly 71% of the population is of working age
Challenges
(using latest available data)
Although Glasgow’s economic inactivity rate has decreased since 2018 to 27%, this remains above:
- The GCR average (24.3%)
- The national average of Scotland (23.2%)
- The national average of the UK (21.1%)
Climate change represents significant risks to the economy,
threatening to impact GDP by up to 2.7% a year by the 2070s (Climate Ready Clyde, 2021)
(there are a specific set of risks to business and the economy which we also need to manage)
We are early in our understanding of the structure and needs of Glasgow’s green economy (the businesses providing goods and services which help us live and work sustainably) and in the steps required to green all sectors of the economy as quickly as possible
At
51.6%
for 3-year business survival rates, Glasgow is below both the national and UK averages,
behind the likes of Bristol, Belfast and Cardiff
Productivity remains an issue
in the city
Although productivity has increased, it is still below regional and national levels
The Scottish Index of Multiple Deprivation (SIMD) 2020 ranks two of Glasgow’s data zones within the bottom 10 data zones in Scotland covering domains including Income, Employment, and Employment/Skills
Life expectancy in Glasgow remains low, highlighting the historical health challenges faced by the city
Both male and female life expectancies at birth in Glasgow are lowest out of all the Scottish council areas and are significantly lower than the UK averages
residents had no qualifications in 2020
Although this is a considerable number of people, one positive is that the percentage of individuals with no qualifications reduced from 16.4% in 2019 to 12.1% in 2020
individuals were employed in low paid sectors in 2019
individuals in Glasgow were economically inactive due to long term ill health in 2020
Low levels of exporting
Opportunities
According to Beauhurst, Glasgow attracted
investment for tech companies in 2021.
This is set to grow significantly with the addition of a Techscaler in Glasgow, the growing tech ecosystem activity and significant innovation skills and investment underway and planned.
City Fibre's
investment in full fibre across Glasgow will reach over
homes and premises, ensuring Glasgow has a robust connectivity base for growth.
The development of Channel 4’s new Creative Media Hub in Glasgow has the opportunity to create:
- a total of 97 jobs
- £6.2 million in Output
- £3.3 million in GVA
in Glasgow.
Barclays have announced that they are increasing their workforce in Glasgow, bringing 2,500 jobs to the city.
Cumulatively, it is estimated that the Barclays workforce expansion could create:
- a total of 5,131 jobs
- £1.35 billion in Output
- £676.1 million in GVA
in Glasgow.
JP Morgan have announced plans to increase their workforce in Glasgow, creating 700 financial services jobs in the city. It is estimated that this workforce expansion has the opportunity to create:
- a total of 1,437 jobs
- £377.7 million in Output
- £189.3 million in GVA
in Glasgow.
It is estimated that the development of Kelvin Hall into a high quality,
multi-camera TV studio will create a total of 154 jobs in Glasgow, £19.1 million in Output and £9.9 million in GVA.
HMRC are increasing their workforce in Glasgow, creating 2,700 jobs in the city. The cumulative direct, indirect and induced economic benefits of this are estimated to lead to the creation of:
- 6,171 jobs
- £868.9 million in Output and
- £482.6 million in GVA
in Glasgow.
The £298 million Glasgow University Multiplex development is estimated to create a total of 4,373 jobs in Glasgow, £683.6 million in Output and £272.9 million in GVA.
ENOUGH, producer of meat alternatives, has raised a significant amount of equity investments up to the value of £49.9 million in 2021.
It is estimated that the overall economic impacts from this investment has the opportunity to create 449 jobs in Glasgow, and lead to a GVA uplift of
£25.5 million.
Twig World, a company offering schools subscription educational materials, raised equity investments up to the value of £21.8 million in 2021.
It is estimated that this level of investment in the education sector has the opportunity to create 823 jobs in Glasgow, and lead to a GVA uplift of £49.1 million.
