Meeting of the Parliament (Hybrid) 16 June 2021
There are of course opportunities for home-grown talent, but we have to look at the demographic projections for Scotland, which show that our working population is decreasing and we are increasingly reliant on people moving here to live and work, as they have done for decades, if not centuries. Such people are made most welcome, because we are an outward-looking, welcoming and internationalist country.
In October last year, we introduced the national transition training fund to address some of the challenges and in response to the threat of rising unemployment, which members have mentioned. However, demand for support was suppressed by successive furlough extensions, which is why we have perhaps not seen the uptake that we anticipated, as the Labour amendment mentions. We agree with much in that amendment, but I just wanted to cite the reason why that is the case with the fund. The fund delivered more than 6,000 interventions for the first phase, and delivery of the provision through colleges and universities will continue until the end of July. As always, we will keep the initiative under review.
We will press the UK Government to extend the furlough scheme for those who need it, and we will continue to offer retraining opportunities for those who need them. We will support the sectors that face the greatest challenges. We will continue to invest in retraining and upskilling opportunities to ensure that Scotland’s workforce is ready for the jobs of the future. We have committed to delivering, within the first 100 days of the new session of Parliament, a green jobs workforce academy to equip our workforce with the skills that are needed to enter into or progress in jobs that are essential for our green recovery.
The Government has long argued that Brexit will be a disruptive force for Scotland’s society and economy. Thankfully, Scotland remains an attractive location in which to live and work. As last week’s EY survey demonstrated, overseas investment in Scotland bucked the UK trend by increasing during 2020 despite the many restrictions that were in place.
Although investment has held up, it is clear that Brexit disruption is beginning to manifest itself. Constituency and regional MSPs must speak to businesses in their areas every other week and get the same feedback: that Brexit is having a massive impact on many parts of our economy. That is certainly the case in my area, and I am sure that it is the case throughout the country and in other members’ experience. Of course, it is not just about the lack of labour; the costs of trade barriers and the difficulty in sourcing materials that have arisen from Brexit are also causing massive problems for the economy in Scotland.
I return to what we can do in Scotland and what employers can do for themselves, which members have mentioned. At a time of skills shortages, it is important that employers grasp the opportunities to become more competitive. The key to that is fair work. The Scottish Government believes that we need more than just jobs. Our commitment to the fair work principles is vital to creating the kind of society that values wellbeing as well as prosperity. We are committed to creating jobs that are greener and fairer and which benefit our economy and society.
Through promoting diverse and inclusive recruitment and working practices and adopting the fair work principles, and by investing in workforce development, training and upskilling, employers will benefit from greater innovation and productivity. Not only is that vital to addressing the skills shortages, employers will benefit from an enhanced reputation that will help them to attract talent. A fair work employer will stand head and shoulders above others.
The Scottish Government, guided by the independent Fair Work Convention, which will soon look at sectors such as hospitality, can support employers to create much fairer workplaces. Ultimately, of course, it is for the employers to make that change. I am pleased to say that I have heard some good examples from hospitality companies that I have spoken to in the past few weeks of how they are improving wages and working conditions, scrapping split shifts and talking about four-day weeks. That is the way forward, and it is an important indication of systemic change in the sector, which I hope we will see across many sectors.
In the employer skills survey that was undertaken between October and December last year, 74 per cent of employers highlighted that upskilling would be needed in the year ahead. Our commitment to delivering a skilled and productive workforce that meets the needs of employers and equips the current and future workforce with the skills for the future predated the pandemic. We will continue to invest in skills and our workforce.
Our economy requires workers from across Europe and beyond if we are to benefit from world-class sectors such as hospitality, tourism, agriculture, health and social care and higher education and research. We value those who come here to work and make Scotland their home. Their contribution not only supports our industries but enhances our culture and society. We need people to contribute at all levels of the economy, including in vital roles in tourism and some of those other sectors. UK Government immigration policy fails to address Scotland’s distinctive demographic and economic needs and disregards the workers on whom we have come to rely and who have been vital during the pandemic. Migrants have been closed off and put off by the UK Government’s hostile immigration policy and Brexit.
As we move forward, we all have a part to play, and I am asking employers to innovate to attract workers into sectors and occupations that are crucial to our economy. I call on the UK Government to listen to and act on the concerns of those Scottish industries that face the twin challenges of the pandemic and Brexit, and to work with us to support employers and workers through the times ahead.
I move,
That the Parliament agrees that a skilled and productive workforce is vital to addressing labour market inequalities, creating fairer workplaces and delivering an inclusive, green recovery; recognises that employers in sectors disproportionately impacted by the COVID-19 pandemic are now reporting skills shortages as a result of the ending of free movement, and that colleges and universities share concern over the impact of Brexit on staff and student mobility; agrees that delivering a skilled and sustainable workforce will require action and collaboration from both the Scottish and UK governments, along with employers and key partners, and welcomes the Scottish Government’s continued commitment to upskilling and retraining, including through the extension of the National Transition Training Fund to 2021-22 and commitment to invest an additional £500 million over the current parliamentary session to support new jobs and reskill people for the future.
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