APPENDIX 2
Profile of businesses who stated "no training
is necessary in our business"
Source: Employers Skill Survey 2002, Futureskills
Scotland.
Distribution of workplaces by industry.
| Industry | All workplaces (%)
| Workplaces where "no
training is necessary" (%)
|
| Agriculture, forestry and fishing | 4
| 7
|
| Energy, water, mining and construction |
8
| 9
|
| Manufacturing | 7
| 3
|
| Consumer services | 25
| 30
|
| Distribution, hotels and restaurants | 17
| 28
|
| Transport and communications | 4
| 7
|
| Banking, finance, insurance and business services
| 23
| 14
|
| Public admin, education and health | 12
| 3
|
| All industries | 100
|
100
|
Note: Totals may not sum exactly to 100 due to rounding.
Distribution of workplaces by size
| Number of employees | All workplaces (%)
| Workplaces where "no
training is necessary" (%)
|
1-4
| 57
|
80
|
5-10
| 21
|
15
|
11-24
| 12
| 5
|
25+
| 10
|
1
|
| All sizes | 100
| 100
|
Note: Totals may not sum exactly to 100 due to rounding.
Annex
Effect on Economic Output and Growth of Raising the Employment
Rate
1. The economy grows either because:
— the volume of inputs grows—more machines,
better roads, more people; or
— the efficiency with which inputs are used grows—higher
productivity; or
2. This note focuses on the effect that increasing the
number of people in employment might have on output in Scotland.
The data used are for 1999, the most recent year for which a full
set of data is available.
3. Scotland's GDP per capita was 5.8 per cent below the
rest of the UK (RUK) level: £12,512 compared with £13,279
for the RUK. GDP per person in employment was 3.8 per cent lower
than the RUK level: £28,429 compared with £29,487.
4. The difference between the levels of output per capita
(5.8 per cent) and output per person in employment (3.6 per cent)
show that the gap between Scotland and RUK is not attributable
to lower productivity alone. In part it reflects a lower level
of labour input in Scotland.
5. Scotland's employment rate was 71.3 per cent compared
with 74 per cent for the RUK. The employment rate is the proportion
of working age people in employment.
6. If Scotland's employment rate rose to the RUK rate,
there would have been an extra 87,000 people in work.
7. If the additional 87,000 people had the same productivity
as those already in work—ie the output per head of new workers
was the same as the output per head of existing workers—Scottish
output would have been 3.8 per cent higher, rising by £2.5
billion. This is equivalent to two full years of economic growth
at Scotland's long-run growth rate.
8. Arguably, the productivity of new workers would be
lower that that of existing workers. Thus, if new workers' productivity
was:
— 75 per cent of that of existing workers, Scottish
output would have been 2.9 per cent higher;
— 50 per cent if that of existing workers, Scottish
output would have been 1.9 per cent higher.
9. The gain from higher productivity would have been
greater. If output per person in employment in Scotland had matched
the RUK level, Scotland's GDP would have been 6.1 per cent higher.
18 July 2002
| 
