Meeting of the Parliament 20 May 2015
Today, Scotland remains a deeply unequal country, and that has a direct impact on our economy. Our objective to boost the economy at the same time as tackling inequality is, I believe, an ambition that is shared throughout the chamber, including by the Scottish Government.
There is no doubt that recent times have been tough for businesses throughout the country. Whether they are large or small, in manufacturing or retail, and in urban or rural Scotland, the economic downturn has had an impact. Markets were tighter, turnover declined and the workforce contracted. In short, the economy struggled, businesses suffered and working people experienced the worst cost-of-living crisis in decades.
Things are beginning to improve. The economy is showing signs of growth. Employment is increasing and confidence is starting to improve, too. However, the figures for the most recent quarter show a marked slowdown in that growth. Although I want to recognise the achievements of our businesses in growing our economy, we equally need to recognise that we have nothing to be complacent about. Despite the growth, the recovery is not shared by everyone who is in work. Too many people are caught in one of the worst cost-of-living crises in decades. There is continuing uncertainty, with zero-hours contracts, low wages and underemployment.
That matters if we are to address inequality, because it is not just a matter of fairness. It is also an economic issue. The Organisation for Economic Co-operation and Development, the International Monetary Fund and others point out that countries that have relatively high degrees of wealth and income inequality have lower levels of economic growth.