Opportunity or necessity… what’s fuelling the growth in self-employment?


With unemployment reaching its lowest level since 1975, it may seem like the state of the labour market has improved in recent years. However, a closer look at the statistics suggests that this is not necessarily the case.

The strong performance in the labour market in part reflects the growth in self-employment, which has been a distinguishing feature of the labour market’s recovery since the last recession.

Growth in self-employment

There were almost 750,000 more self-employed in the UK workforce at the end of 2014 than at the start of the global financial crisis in 2008, representing a high proportion of the total net growth in jobs over this period. Self-employment accounts for over 15% of those in work in the UK – 4.8 million of a workforce of around 32 million. Between March 2008 and March 2017, self-employment accounted for almost a third of total employment growth.

The significance of the contribution of self-employment is highlighted in a recent article published in Regional Studies, which notes that of the 920,000 net new jobs created between quarter 1 of 2008 and quarter 2 of 2014, 693,000 were in self-employment.

There has also been a rise in the share of female self-employed and those that work part-time, in addition to growth in a broader range of industries and occupations among the self-employed.

Recent ONS figures also show that the growth in self-employment between 2001 and 2016 has been driven mainly by those who have a degree (or equivalent), leading to the share of the self-employed with a degree or equivalent increasing from 19.3% in 2001 to 32.6% in 2016 as a share of total self-employed. As a share of total employment (self-employed and employed), the figures show that relatively highly-qualified individuals are becoming more concentrated in the self-employed.

Earnings growth?

The reasons for this growth has been the subject of much debate, particularly as research suggests many fail to earn a decent living. This recent analysis by the New Economics Foundation found that 54% of all self-employed people are not earning a decent living. It also found that the percentage of the labour force in ‘good jobs’ had decreased from 63% in 2011 to 61% in 2016, suggesting that the quality of jobs is perhaps declining.

Similarly, the ONS figures suggest that the self-employment labour market remains financially insecure for its workers. They show that the distribution of self-employed income appears centred around £240 a week, much lower than that for employees, which is centred around £400 a week.

And, according to a recent report from CIPD, their real incomes have fallen more since 2008 than those of employees.

Perhaps, then, the self-employment growth has been driven by necessity rather than choice due to a lack of opportunity in the full-time labour market.

However, the evidence suggests it is not this simple.

Despite the widening gap in earnings between the self-employed and employed, the self-employed continue to have higher levels of job satisfaction than employees. The ONS figures also indicate that self-employed workers were more likely to supplement their income from elsewhere.

This would suggest that choice probably plays a large part in self-employment.

‘Push’ or ‘pull’ effect

There has been much discussion over whether the growth in self-employment is predominantly a result of choice or necessity.

It is often seen as a sign of labour market weakness, with self-employment perceived as a ‘last resort’ where a regular job can’t be found. The evidence suggests that this motivation accounts for just a small proportion of the change, however, with most of the rise in self-employment appearing to be out of choice rather than necessity.

Indeed, the recent analysis in the Regional Studies article, which examined the extent to which self-employment was associated with local ‘push’ or ‘pull’ effects, found little or no suggestion of any net ‘recession-push’ effect on self-employment. It suggests that:

  • ‘pull’ factors are more significant in driving transitions into self-employment;
  • self-employed business ownership appears not to function as a significant alternative to unemployment where paid employment demand is weak; and
  • entrepreneurial activity prospers where local wages are higher and unemployment lower.

The uncertainty surrounding Brexit could also be having an effect as declining employer confidence has contributed to a growing number of short-term contracts – potentially making self-employment appear the better choice.

Final thoughts

As the CIPD report highlights, there are probably more opportunities for self-employment now than there were a decade ago. And the self-employed are more likely to value highly aspects of the work, such as its variety, and choice over their working hours and pay.

Across the range of job-related characteristics, it is shown that the self-employed are as satisfied or more satisfied with their working life than employees, resulting in higher levels of overall job satisfaction – a finding that is consistent both over time and from different data sources.

In a time where work-life balance is of increasing importance, it is perhaps no surprise that self-employment is the path of choice.

If you enjoyed reading this, you may also be interested in our previous blogs on the gig economy, ‘the self-employment boom’ and ‘olderpreneurs‘.

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Figuring it out: five issues emerging from the Scottish draft budget

The week before Christmas might not seem an ideal time to be mulling over the minutiae of economic forecasts and the implications of tax changes. But on Monday morning, the Fraser of Allander Institute (FAI) review of last week’s Scottish draft budget attracted a big turnout, and helped make sense of the numbers announced by Scotland’s Finance Secretary, Derek Mackay.

Here are some of the key issues to emerge from yesterday morning’s presentations.

  1. Growth: degrees of pessimism

Last month, the UK Office for Budget Responsibility revised downwards its growth forecast for the UK economy to less than 2%. The FAI, meanwhile, has forecast a slightly lower growth rate for the Scottish economy of between 1% and 1.5%. However, the independent Scottish Fiscal Commission (SFC) is much more pessimistic, forecasting growth in the Scottish economy of less than 1% up to 2021. If the SFC’s forecast turns out to be accurate, this would mean the longest run of growth below 1% in Scotland for 60 years.

Dr Graeme Roy, director of the FAI, suggested that the SFC’s gloomy outlook is based on the view that the Scottish working-age population is projected to decline over the next decade. In addition, the SFC also believes that the slowdown in productivity, which has been a blight on the Scottish economy since the 2008 financial crisis, will continue.

  1. Income tax rises: reality v perception

Mr Mackay proposed big changes in Scotland’s tax system, with five income tax bands stretching from 19p to 46p. While these measures attracted the biggest headlines for the budget, the FAI believes that most people will see little meaningful impact in their overall tax bill (relative to income). Charlotte Barbour, director of taxation at the Institute of Chartered Accountants of Scotland, also suggested that the tax changes are unlikely to result in any significant behavioural changes in the way people pay tax in Scotland. And, as has been noted elsewhere, high taxation does not necessarily lead to unsuccessful economies.

However, as the FAI highlighted, perception is important, and if Scotland comes to be seen as the most highly taxed part of the UK, this could have serious implications for business start-ups and inward investment.

  1. Taxation: two systems, multiple implications

Charlotte Barbour also highlighted some of the implications of the tax changes in Scotland that haven’t featured widely in press coverage. How the changes interact with areas such as Gift Aid, pensions, the married couple’s tax allowance, Universal Credit and tax credits will need careful examination in the coming weeks.

  1. Public spending: additional resources, but constrained settlements

The FAI’s David Eiser noted that Mr Mackay was able to meet his government’s commitments to maintain real terms spending on the police and provide £180m for the Attainment Fund. He also announced an additional £400m resource spending on the NHS. But these settlements are constrained in the context of the Scottish Government’s pay policy,

Mr Mackay’s plan offers public sector workers such as nurses, firefighters and teachers earning less than £30,000 pounds a year a 3% pay rise, and those earning more than that a 2% rise. For the NHS alone, this could cost as much as £170m.

In addition, analysis published yesterday by the Scottish Parliament Information Centre (SPICE) has estimated that, if local authorities were to match the Scottish Government’s pay policy, this would cost around £150m in 2018-19.

  1. The budget’s impact on poverty

If the growth forecasts are correct, even by 2022 real household incomes in Scotland will be below 2007 levels. Dr Jim McCormick, Associate Director Scotland to the Joseph Rowntree Foundation, looked at the Scottish budget in the context of poverty, and suggested that three principles need to be addressed before the budget can be finalised: there are opportunities both to increase participation by minority groups in employment and to improve progression in low-wage sectors, such as hospitality and retail; energy efficiency is one important way of lowering household bills and improving housing quality in the private rented sector; and options such as topping up child tax credits and more generous Council Tax rebates are better at reducing poverty than cutting income tax.

Finalising the budget

As all of the speakers noted, the Scottish draft budget is not a done deal. The minority Scottish National Party government in the Scottish Parliament needs the support of at least one other party to ensure its measures are adopted. The most likely partner is the Scottish Green Party, which has indicated that the budget cannot pass as it stands, but could support the government if an additional £150m is committed to local government.

It took until February this year before the Scottish Government’s 2016 draft budget could be passed. Time will tell whether a budget announced shortly before Christmas 2017 can finally be agreed before Valentine’s Day 2018.

The complete collection of slides presented at the Fraser of Allander Institute’s Scottish budget review are available to download here.

Our blog post on the Fraser of Allander Institute’s review of the Chancellor of the Exchequer’s 2017 Autumn Budget is available here.

Who’s caring for our young carers?

In less than two months time the UK will come together to recognise the 700,000 young people in the UK who provide care and support to families and friends, on Young Carers Awareness Day on 25 January.

Every day, children and young people provide physical and emotional care and support to their family members. Helping with household tasks, they care for young siblings, administer medication and deal with the emotional and physical stress of caring for a loved one with an illness. Estimates of the number of young carers living in the UK vary greatly. But Carers Trust suggests the number of young carers to be around 700,000 – that’s 1 in 12 secondary school-aged pupils. And those are only the ones we know about. Too many are falling through the net, going unnoticed and unidentified by services who can support them.

Attainment and employment

Earlier this year we joined in publicising the 2017 Young Carers Awareness Day, whose theme was “When I grow up”. The idea was to help people to understand how difficult it can be for young carers to realise their hopes and dreams for the future without the right support in place. A survey conducted by the Young Carers Trust found that over half (53%) of those surveyed were having problems in coping with schoolwork, with nearly 60% struggling to meet deadlines. Over 70% have had to take time out of school or learning specifically to care for a family member. A third admitted that they have to skip school most weeks.

With over 50% of young carers surveyed by The Children’s Society admitting that their caring responsibilities have caused them to miss days at school, and the burden of caring impacting on the ability of children to engage fully with school activities, it is unsurprising that young carers are twice as likely to be NEET as their peers. In addition, young carers in work find caring responsibilities have a disruptive effect on their workplace attendance, with understanding and flexible employers often being the difference between young adult carers remaining in work or becoming unemployed.

Mental health and wellbeing

Caring for a relative takes a massive toll on a young person. Recent reports published by Carers Trust and the Children & Young People’s Commissioner Scotland (CYPS) both show the significant mental health burden that caring places on a young person. Stress, isolation and anxiety that can come as a result of being a carer can have a significant impact on a child as they lose much of their contact with the outside world, become removed from social groups and miss out on opportunities to experience a “normal” childhood. Projects like Off the Record’s Young Carers Project in Croydon provide support and opportunities for respite for young carers. But it is clear that as child and adolescent mental health services  (CAMHS) are becoming increasingly stretched themselves, it is more important than ever to ensure that specialist services are also made available to young carers.

Partnerships working to provide support

Young carers often come into contact with multiple services. Education, social care, health and others all have an impact on young carers and their experiences and as a result can have a positive impact on their experiences too. Increasingly, services are being encouraged to cooperate in order to create a holistic support network for young carers, which encompasses every area of need they may have, and creates a seamless transition for young carers through all of their interactions with various services. Key coordinators and facilitators are vital in this role.

In the previously referenced report from CYPS, it was highlighted that many young carers felt positive about – and took pride in – their caring role, but that around two-thirds also said they felt “left out of things” at least some of the time. While they care for their loved ones, we need to make sure someone is caring for them.

Young Carers Awareness Day 2018 will take place on 25 January 2018.

Follow us on Twitter to see what developments in public and social policy are interesting our research team.

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World Social Work Day: promoting community and sustainability

“Shifting into reverse” – the global gender gap

Gender equality

Image by GDJ via Creative Commons

By Heather Cameron

“Gender parity is shifting into reverse” – this was the finding of the World Economic Forum’s (WEF’s) most recent annual Global gender gap report, published last month.

This is the first time progress, albeit slow, towards gender parity has stalled since the WEF started measuring it in 2006.

Widening gap

On current trends, the overall global gender gap can be closed in exactly 100 years, compared to 83 years reported in last year’s report.

The economic situation is even worse.

Last year, we reported on the gender pay gap, which highlighted the WEF’s 2016 findings that the global economic gender gap will take 170 years to close. This year’s WEF report indicates that women may now have to wait over 200 years to achieve equality in the workplace:

“given the continued widening of the economic gender gap already observed last year, it will now not be closed for another 217 years.”

According to the report, the gaps between women and men on economic participation and political empowerment remain wide. Just 58% of the economic participation gap has been closed – a second consecutive year of reversed progress and the lowest value measured by the Index since 2008 – and about 23% of the political gap, unchanged since last year against a long-term trend of slow but steady improvement.

For the other indicators, the 144 countries covered in the report have closed 96% of the gap, on average, in health outcomes between women and men, unchanged since last year, and more than 95% of the gap in educational attainment, a slight decrease on last year.

Overall, an average gap of 32.0% remains to be closed worldwide in order to achieve universal gender parity, compared to an average gap of 31.7% last year.

The most challenging gender gaps remain in the economic and health spheres.


The situation is more nuanced at the country and regional level, however. And the report highlights that a number of regions and countries have crossed “symbolic milestones” for the first time this year.

Countries that improved the economic gender disparity included France and Canada. The UK was one of the most improved this year in general, up five places on last year to 15th place. The report also notes that the UK has made notable progress on political empowerment and women in ministerial positions.

Despite this, the UK still performed more poorly than many other developed countries in a number of categories and things still need to be improved on economic and political participation in the UK.

The lack of any of the G20 nations within the top 10 has also been noted, suggesting that economic power does not necessarily equate to better gender equality. The WEF estimate that the UK could add $250bn to its gross domestic product (GDP) by achieving gender parity.

Final thoughts

Clearly, the importance of gender parity cannot be ignored, not only because it’s unfair but because it can also lead to better economic performance.

The WEF report argues that a key avenue for further progress is the closing of occupational gender gaps, which will require changes within education and business sectors and by policymakers.

It still appears to be the case that higher earning jobs are more commonly held by men. And with recent research suggesting that there is gender bias in job adverts across the UK, such changes can’t come soon enough.

If you enjoyed reading this, you may also like our other posts on the gender pay gap and the place of women in the ‘changing world of work’.

Follow us on Twitter to see what developments in public and social policy are interesting our research team.

Using an asset based approach to support people with learning disabilities into work

This blog is based on discussions from the Scottish Commission for Learning Disability conference, held in Perth in September 2017.

Introducing an asset-based approach

The term ” asset-based” is commonly used within community development and public health. It is used to mean an approach that identifies and emphasises the strengths and abilities of people within a community.

Instead of focusing on what people are unable to contribute, asset-based approaches instead focus on finding the value and potential of each individual, regardless of their background or personal circumstances.

At the SCLD conference in September, the audience heard examples of how asset-based approaches are being used within the field of employment support. A number of projects across Scotland are creating opportunities for people with learning disabilities to participate and contribute to their local community through meaningful work that recognises their abilities, and not the barriers created by their disabilities.

Facilitating a culture change

Research by Mencap found that although around 8 in 10 working age people with a learning disability have one that’s mild or moderate, fewer than 2 in 10 are actually in employment. Overall employment rates are also much lower than for the rest of the population or for people with physical disabilities – although recent data is lacking, in 2008 a study suggested that only about 17% of all working age people with a learning disability have a paid job.

Enabling people with a learning disability to enter employment is something that requires more than a change in policy or increased funding to improve skills and access to employment schemes (although that is also invaluable). To successfully integrate adults with learning disabilities into the workforce requires a change in employer attitudes. More generally it also requires a transformation in how we perceive learning disability within society.

One of the biggest barriers to participation in employment, are the attitudes and perceptions of other people. Increasing the understanding of how much people with learning disabilities can bring to a job and a workplace is crucial. This is where asset-based approaches can really help. They focus on identifying and making the most of someone’s abilities, and allowing individuals to offer these skills and abilities as a part of a positive contribution to their community through work.

Projects that put people at their heart

The Scottish Commission for Learning Disability (SCLD) has supported a range of projects for people in Scotland with learning disabilities. In September 2015, SCLD announced that the Scottish Government was seeking applications for development funding to support the refreshed delivery approach for The Keys to Life (Scotland’s learning disability strategy).

Of the projects awarded funding, two focussed specifically on tackling underemployment among the learning disabled population.

  • Wee enterprizers (a project that aims to increase employment opportunities for adults with learning disabilities) helped a group of aspiring entrepreneurs with learning disabilities to progress their micro business ideas. Events and workshops allowed participants to come together and share business plans, marketing ideas, and resource strategies. It also helped to identify suppliers and trading opportunities. The Yunus Centre at Glasgow Caledonian University conducted an evaluation of the project. It found that as well as helping business ideas to get off the ground, it also helped to encourage personal growth and independence in participants, improved communication skills and provided an opportunity for entrepreneurs to form a network of their own to help support each other.
  • Tayberry Enterprises provided creative art activities, volunteer opportunities and training placements in catering for people with significant health barriers to employment. The Multi-Storytelling Project offered adults with a learning disability, experiential training apprenticeships in techniques that would help them communicate effectively in a variety of different ways.

More than just work

What these projects had in common was their ability to promote the holistic benefits of training and employment. Like anyone else, opportunities to work allow people with learning disabilities to form new and engaging relationships, and to feel that they are making a positive contribution to their community. This in turn helps them to feel valued as people, not limited by their condition or circumstances.

The use of asset-based approaches adds an extra layer, as they often highlight the advantages of bringing people from different backgrounds together. For example, a project that helps to get people with learning disabilities into employment by offering training opportunities, could also double as a centre for older people who suffer from loneliness, with both communities bringing unique perspectives and contributions to the table. This enriches the experience for everyone and helps to create stronger and more resilient bonds within the community.

Final thoughts

Employment opportunities are limited for people with a learning disability. However, schemes which take into account and actively seek to make the most of a person’s assets, can go some way to reducing negative perceptions and prejudice within society.

Everyone should have the opportunity to learn, form relationships and live their dreams and aspirations, while demonstrating how they can thrive and positively contribute to their local communities.

Follow us on Twitter to see what developments are interesting our research team.

If you enjoyed this blog, you may also be interested in our other articles: 

Supporting markets to survive and thrive

For around a thousand years, the London Borough Market has existed in one form or another.  It has survived fire, flood, plague and war – and on the 3rd of June this year, a terrorist attack.  The market has since reopened, with traders determined to continue their work and serve the local community.

Although many markets are a historic part of their host towns and cities, they are far from being relics.  Indeed, in recent years markets have experienced something of a revival.  In London alone, since 2010, the number of street markets has grown from 162 to over 250.

There are clear reasons for this – markets offer consumers and traders a number of benefits, and they make significant contributions to the economic, social and political health of towns and cities.

Economic impact of markets

Indeed, in 2015, the Institute of Place Management (IPM) conducted a comprehensive review of the impact of markets and found that markets not only have a significant turnover, they also impact indirectly on the wider economy – meaning that the £3.5 billion turnover directly attributable to retail markets is actually worth around £10.5 billion to the UK economy.

The Portas review in 2011 hailed markets as a potential saviour of the high street.  Indeed, the IPM review supports this, reporting that markets can help to increase town centre footfall by up to 25%.  This has significant economic potential.  In London, market visitors spend around £752 million per annum in nearby shop-based retailers.

Markets were also found to:

  • act as a significant employer, both nationally and at the local level
  • support intergenerational economic mobility (through family-owned businesses)
  • support the development of entrepreneurial skills in young people through ‘youth markets’
  • act as business incubators and support business formation due to their low barriers to entry, for example, enabling migrants to set up their own businesses
  • enable small businesses to reach larger businesses whom they can supply, and support other local businesses, such as farmers.
  • encourage high street diversity and create a distinct ‘identity’ for high streets
  • promote high street resilience, as they are flexible and able to respond quickly to changing demands.
  • help to utilise vacant and underused spaces within high streets
  • attract tourists, who are drawn to them because they are “unique, quirky, unusual”

Wider benefits

Markets also have a number of social purposes.  They are important places of social interaction, which facilitate community cohesion and social inclusion.  Markets can also help to improve public health and quality of life through the provision of fresh, quality produce at lower price points, which may be particularly beneficial for low-income families.

From an environmental perspective, there are also a number of benefits arising from the sale and purchase of locally produced products, including reducing pollution associated with high ‘food miles’ and reducing the need for consumers to travel to out-of-town sites, such as large retail parks, in order to make their purchases.


Although there is overwhelming evidence that almost every street, food and farmer’s market is an invaluable asset to its local community, markets still face a number of very real threats.  These include:

  • the rise of out-of-town shopping centres, the dominance of big supermarkets, and the popularity of online shopping
  • planning and regulatory regimes that do not allow for, or restrict, the expansion or establishment of markets
  • a lack of support for markets or poor management by local authorities
  • high land values making it difficult for markets to be established

As many markets are a lifeline for areas experiencing deprivation, it is important that they receive the support that they require to survive and flourish.

Promoting and supporting markets

So, what can be done to support markets?  Earlier this year, the Mayor of London, Sadiq Khan, announced plans to establish the London Markets Board – a team of experts tasked with delivering a London markets strategy, and work to preserve and promote London’s increasing number of markets.

On a wider scale, NABMA (National Association of British Market Authorities) and the National Market Traders Federation recently published a ‘five-year manifesto’, which made a number of recommendations for ways to support markets.

A key recommendation is that local authorities work to raise the profile of markets.  There are many market-focused national initiatives such as Love Your Local Market, the National Youth Market, and the Great British Market Awards, which local authorities can become involved in.

The Love Your Local Market campaign, for example, is an annual event, established in 2012, which brings together markets across the UK.  It aims to build affection and support for markets in local communities, and offers free or subsidised pitches to start-ups to test trading conditions.  In 2013, it increased footfall in participating town centres by 10%.

Other recommendations to support markets include:

  • greater recognition of the role of markets in local economies, jobs and growth, as well as in civic local society
  • ensuring that retail markets have a voice in policy making that affects them, including planning and town centre management
  • further lifting the current burden of business rates for SMEs
  • supporting greater awareness of the sector’s employment opportunities including apprenticeships, platforms for self-employment and training hubs
  • developing and supporting sector-led initiatives that aim to support entrepreneurship and increase the amount of businesses on markets, and support them digitally
  • encouraging schools and further education establishments to work with market operators to enable people entering the labour market to embrace markets as a possible career

There are some promising signs.  Around £90 million has been invested into improving markets since 2014, and an increasing number of local authorities are making them central to town centre plans and regeneration activity.

By promoting and supporting markets in this way, the economic, social and environmental benefits can be maximised. As the 2015 review of markets underlines: “markets are an important asset to a location, and their future cannot be left to chance.”

Planning for the digital economy

The digital tech sector is the UK’s fastest growing sector.    Recent statistics show that it is growing as much as 50% faster than the wider economy.  In London alone, a new tech business starts up every hour.  Beyond London, digital tech clusters across the country are driving the economic resurgence of many cities and city regions.

The rapid growth of the sector means that its spatial footprint has become increasingly evident in towns and cities across the UK.  In May, the Royal Town Planning Institute (RTPI) published guidance on how town planning can respond to and guide the future development of the digital economy.  It makes recommendations for planners in two areas:

  • how to encourage the growth of the tech sector in their local area; and
  • how to make best use of the opportunities provided by the tech sector for the planning system

What is the tech sector?

The digital tech sector is increasingly diverse, and there is no straightforward definition.  The 2016 Tech Nation report identified 16 different sectors, some of which include:

There are currently around 58,000 active digital tech businesses in the UK.  It employs 1.64 million people, and job growth is more than double that of other sectors.  Roles are generally highly skilled and well paid, compared to other sectors.  Indeed, the average salary is 44% higher than the national average!

Location preferences

Digital tech, as a sector, thrives off well-planned spaces with access to good local infrastructure.  Tech firms and their employees tend to prefer easily accessible, walkable, multi-use districts. This results in the creation of ‘clusters’ of similar firms in central urban locations.

Clustering has a number of advantages for digital tech businesses – including easy access to large talent pools and the ability to network and exchange ideas face-to-face with local, likeminded businesses and employees – a key driver of innovation.

London, Manchester and the Greater South East have some of the largest digital tech clusters in the UK; however, the Tech Nation 2017 report mapped 30 significant clusters across the length and breadth of the UK – from Dundee to Exeter.

Facilitating the growth of the sector

The recent growth of the sector has already led to a number of economic policy responses, including the development of enterprise zones, innovation and business centres, and ‘innovation districts’.  The RTPI guidance also highlights a number of smaller-scale responses that can be utilised to attract and foster tech industry growth, including:

  • ‘de-risking sites’ by making sure that planning requirements are “practical, clear and known in advance of specific proposals coming forward
  • using public money for assembling and servicing sites that are more challenging
  • the provision of Wi-Fi in specific locations
  • making districts pedestrian and cycling friendly
  • leveraging Public Private Partnership models to build digital infrastructure

In addition to these responses, the RTPI makes three recommendations for planners on how they can create an environment that is attractive to digital tech firms.

First, it suggests that planners should monitor the local economy to get a sense of what local growth industries are.  Policies can then be adapted to local economic conditions.  Some local authorities already do this using company registration data.  For example, Camden Borough Council use this data to inform a quarterly ‘Business and Employment Briefing’.  It covers a range of measures, including business size and type, employment in the borough, commercial property, unemployment, worklessness and qualifications.

In order to attract and assist the growth of the digital tech sector, it is important for local planning teams to have a proper understanding of the sectors’ spatial preferences.  This is particularly important when drawing up local plans.  Therefore, the second recommendation made by the RTPI is that local authorities should employ someone to engage with local tech firms to find out how planning could help to better facilitate their growth. The roles of The Dublin Commissioner for Startups and the Amsterdam Chief Technology Officer are potentially interesting models for this.

Third, the RTPI recommends ensuring that there is sufficient housing, office space and transport infrastructure to meet capacity.  These three elements are the “fundamental ingredients for an economically and socially successful city”.  Without them, no amount of other interventions will attract firms to an area.

The Tech Nation 2017 report found that 30% of digital tech community members cited their local transport infrastructure as a ‘business challenge’.  Tech London Advocates report similar concerns, whilst also highlighting the challenges posed by digital infrastructure: “It has become increasingly clear that a fundamental challenge facing tech companies in London is infrastructure. The tech sector has grown so fast that the provision of office space and digital connectivity is having to play catch up”.

The digitisation of planning

The growth of the digital tech sector not only creates jobs and generates wealth; it creates opportunities for improved efficiency in other sectors too.  In planning, digitisation can free up time and resources, and create new tools for planners to utilise.  From the adoption of  geographic information system (GIS) software for mapping, to experimental trials of 3D modelling software and virtual reality in plan making and community engagement, technology has and continues to present a number of opportunities to improve the planning system.

Beyond planning, innovations in the digital tech sector aid the creation of ‘smart cities’ – where information and communication technology (ICT) and ‘Internet of Things’ (IoT) technologies are integrated to manage cities’ assets, with the overall aim of improving efficiency.  Examples of potential usage vary considerably, from supporting people with disabilities or chronic illnesses, to the provision of real-time traffic data, controlling streetlights and monitoring environmental data.

As such, a final recommendation made by the RTPI is to make use of local firms’ skills and resources to address cities’ infrastructural challenges.

Addressing inequality

Despite the rapid growth of the digital tech sector and its contribution to job and wealth creation, there is an increasing recognition that the benefits created by the sector can be insular and often do not spill over to the local economy.

Indeed, studies have found that the higher the share of tech employment in a city, the more income inequality there is.  On this basis, the digital tech sector has been criticised for its potential to create a ‘two-tier economy’.  There are also concerns about the gentrifying effects of digital tech clusters on local areas.  In London, for example, tech growth has increased the cost of living in some parts of the city, displacing smaller firms and lower income families.  It also poses a potential threat to innovation as startups are priced out of successful digital tech clusters.

Clearly addressing these issues poses some significant challenges for policymakers.  Last year, the RTPI made a number of recommendations in this regard, including helping local people to develop the skills needed by local tech companies.

Successful planning

The digital tech sector has enormous potential to enhance economic growth.  Through its ability to create the optimal conditions for the digital tech sector to thrive, planning can help to encourage this growth.  Understanding local economic trends, consulting with digital tech businesses about their needs, and ensuring that local infrastructure has the capacity to meet these needs, are vital to successful planning for the digital tech sector.  At the same time, ensuring that this growth is sustainable and benefits wider society are key challenges for planners.

Working longer – the reality ‘behind the headlines’

Senior businessman in office working on laptop

By Heather Cameron

With no shortage of headlines highlighting the record employment rate in the UK, and the increasing number of older workers widely reported, it may seem that the outlook for the ageing workforce is a rosy one. But do these headlines hide the reality?

Recent analysis from Age UK argues that the headline employment rate doesn’t tell the whole story about working longer, “making it an insufficient – and even misleading – tool for public policy decision-making”.

The statistics

The most recent official figures show that the employment rate (the proportion of people aged from 16 to 64 who are in work) is the joint highest since comparable records began in 1971, at 74.8%, while the unemployment rate is the joint lowest since 1975.

Data also shows that the employment rate for people aged 65 and over has indeed increased since the 2008 recession. It is currently at 10.4%, up from 7.3% in 2008.

Age UK has also recognised the increase in employment rates for older people, noting that, in fact, the older the age group, the greater the increase in employment. However, the average number of hours worked has declined since the recession, indicating a more complex and perhaps less reassuring situation than the one portrayed in the media.

The biggest drop was for 50-54 year old men, whose average hours declined by 29%. For men aged 60-64, the average number of hours declined by 8 hours (over 22%), while women aged 50-54 experienced a fall of 18%.

The only age group not to see a decline was women aged 60-64, which is likely to be as a result of the raising of the State Pension age.

Choice or necessity?

The change in the State Pension age was justified on the grounds that it gave people more choice and more scope to continue working if they wished to.

A recent CIPD survey found that the most common reason for wanting to work past 65 is that employees believe it will help keep them mentally fit, followed by wanting to be able to earn a sufficient income to continue to do the things they enjoy.

As Age UK suggests, it may be that the reduction in working hours is a good sign if it is due to older workers choosing to wind down their hours, maybe to enable them to juggle other responsibilities such as caring for their grandchildren, while still earning a wage.

However, the research suggests it may be less through choice and more as a result of the changing labour market such as increasing underemployment (working less hours than they would choose to) or increasing insecure working practices driven by the rise in self-employment and the ‘gig economy’.

As it is likely working fewer hours will mean less income, this could be a cause for concern since it will be more difficult for older workers to maintain their standard of living until they meet the State Pension age and for them to save enough for retirement.

Another issue highlighted by the CIPD, is that most employees don’t believe their organisations are prepared to meet the needs of the over 65s, suggesting that there is a need for employers to also review their practices in terms of managing older workers.

Final thoughts

It is clear that while, for some, choosing to work beyond the traditional retirement age will be a lifestyle choice, for many it will be a necessity. Any substantial reduction in working hours for these older workers could consequently pose a real issue.

It would therefore make sense for policy makers to heed the warning from Age UK not to rely on the headline rate of employment for older workers, and rather look beyond it to the reality of many struggling to get and keep the secure, well paid jobs they want and need.

If you enjoyed reading this, you may be interested in reading our previous post on the pros and cons of the gig economy.

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Scotland’s space sector: a launchpad for economic growth

Discovery space shuttle on launchpad

By Steven McGinty

In March, the UK Space Agency announced it had awarded £50,000 to the University of Strathclyde’s Scottish Centre for Satellite Applications (SoXSA) for its work with Glasgow City Council to attract entrepreneurs and start-ups to Glasgow’s innovation hub, Tontine.

Six companies will benefit from the support, which includes space industry specific business support, dedicated workshops and expertise, and administration and accommodation costs for two years.

The award is another sign of faith in Scotland’s burgeoning space industry, which has seen it become a global leader in the ‘New Space’ economy.

The development of New Space

The space industry, like many other technology fields, has been traditionally dominated by nation states, often in terms of national security.

But now, a new space industry is emerging, where private companies and entrepreneurs are developing innovative products and services in or for space. Reasons for this include reductions in funding to national space agencies, such as Donald Trump’s recent cuts to NASA, as well as the private sector’s success in innovation. For example, the company Space X has managed to launch rockets that had previously been into space – a practice which has been estimated to reduce the first stage of space flight from $60 million to $500,000.

Scotland’s role

Within a few miles of Glasgow’s city centre, a small number of research groups and private companies have gained international reputations for their work on space technologies.

For instance, Glasgow – a city more known for its heavy industries and shipbuilding – has found a niche in manufacturing low cost nanosatellites. This has led to Glasgow being crowned ‘Europe’s Satellite City’.

Glasgow’s first satellite company, Clydespace, has been tremendously successful over the past decade by developing CubeSats (a satellite the size of a wine bottle). These have been used in a range of missions, including UKube-1, the first mission to be commissioned by the UK Space Agency as a demonstrator for space technologies.

The city has also seen investment from Spire Global – a satellite powered data company headquartered in San Francisco. Spire’s satellites, which are used to gather data on weather, maritime, and aviation, were built by Clydespace. Peter Platzer, CEO of Spire, explains that:

We have up there about 20 satellites, all exclusively built here in Glasgow.”

Mr Platzer highlights that Scotland’s confidence in Spire was one of the reasons that they opened their European office in Glasgow’s Skypark. The company received a £1.5m Scottish government grant through the agency Scottish Development International (SDI).

Scotland’s low cost base and universities with strong interests in engineering and space technologies were also highlighted as key selling points.

Young innovators have also sought to get involved in Scotland’s space sector. For example, Tom Walkinshaw, founded Alba Orbital from his bedroom when he was unable to secure a job in the space industry. His company provides PocketQube satellites (based on a design of one or more 5cm cubes) and now employs 10 skilled employees. Alba Orbital’s first satellite, Unicorn-1, is backed by the European Space Agency and is due for launch later in the year.

In academia, the University of Glasgow’s LISA Pathfinder team won the 2016 Sir Arthur Clarke Award for “Space Achievement in Academic Research or Study”. The award was given for the team’s work on developing the Optical Bench Interferometer (OBI) for the European Space Agency’s LISA Pathfinder spacecraft – a demonstrator aimed at measuring gravitational waves in space.

The future of Scotland’s space economy

A report by London Economics investigated the potential benefits of a spaceport in Scotland.

Prestwick Airport in South Ayrshire and Machrihanish, near Campbeltown, are currently competing to win a licence from the UK Government.

London Economics have set out three main advantages to having a local spaceport:

  • Spaceport operations – The activities associated with a spaceport will lead to the direct creation of jobs in commercial spaceflight or providing satellite launches, as well as indirect benefits for local suppliers.
  • Space tourism – Tourists visiting space stations or taken part in space travel are also likely to spend money in the surrounding areas and on other attractions.
  • Space-related education – Spending will increase on research and development due to the creation of a spaceport.

Tom Millar, managing director of DiscoverSpace UK, has also stated that sending small satellites into space would be a ‘viable revenue stream’. A local spaceport would reduce the costs for Scottish satellite companies as at the moment they currently have to ‘piggyback’ onto launches with larger satellites.

The report concludes by finding that a spaceport in Scotland would increase growth from 9% to 10% of the UK’s space economy in 2030.

The implications of Brexit

The results of the 2016 EU Referendum has caused uncertainty for the Scottish space sector. For example, many companies will be concerned for the rights of EU national employees, as well as their ability to recruit from this workforce in the future.

The Financial Times has also reported that changes in terms could keep UK companies out of lucrative European space contracts, such as the €10bn Galileo satellite navigation system. The European Commission are looking to change the terms of the Galileo project so that contracts can be cancelled if a company is not based in a member state. They also require companies to pay the costs of finding a replacement. If these terms are approved, it would effectively rule out UK-based companies bidding for EU projects, which would have a negative impact on the sector’s growth.

Final thoughts

Scotland’s space sector is estimated to be worth £134 million and accounts for 18% of all UK space industry jobs. Its success has been built on a combination of government support, talented entrepreneurs, and a supply of skilled engineers.

As the industry continues to grow, there will still be an important role for government, particularly in supporting innovation centres and granting licences for UK spaceports. The promotion of STEM (science, technology, engineering and maths) subjects will also be crucial, as we look to develop a new generation of space entrepreneurs to keep us ahead of this new industrial space race.

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How to tackle unconscious bias: Step 1 – read this!

What is unconscious bias?

Although levels of explicit prejudice are falling, discrimination continues to be a problem for many sections of society.  One reason for this may be ‘unconscious bias’.

Unconscious bias is “a bias that we are unaware of, and which happens outside of our control. It is a bias that happens automatically and is triggered by our brain making quick judgments and assessments of people and situations, influenced by our background, cultural environment and personal experiences.”

Everyone has some degree of unconscious bias.  Unconscious thoughts are often based on stereotypes and prejudices that we do not realise that we have.

From a survival point of view, these brain ‘shortcuts’ are a positive and necessary function – they help us to make snap decisions in dangerous situations, for example.  However, in everyday life, they can negatively effect rational decision-making.

Types of unconscious bias

Unconscious bias has different forms.  One common form is Affinity bias – the subconscious preference for people with similar characteristics to ourselves (sex, age, ethnicity, socioeconomic class, educational background etc.).  In 2015, the CIPD reported that recruiters were often affected by affinity bias, resulting in the tendency to hire ‘mini-mes’.

The Halo effect involves the tendency for an impression created in one area to influence opinion in another area.  For example, a disproportionate number of corporate CEOs are over six foot tall, suggesting that there is a perception that taller people make better leaders, or are more successful. Similar patterns have been observed in the military and even for Presidents of the United States.

The Horns effect is the opposite of the ‘Halo effect’ – where one characteristic clouds our opinions of other attributes.  For example, the perception that women are ‘less capable’ in certain occupations.  A review found that female psychologists and women in STEMM (science, technology, engineering, mathematics and medicine) departments were just as likely to discriminate against female candidates as their male counterparts.

The same qualities can also be perceived very differently in different people – for example, assertiveness in a man may be perceived more positively (‘strong leader’) than in a woman (‘bossy’).

Impact of unconscious bias

Unconscious bias not only influences our body language and the way we interact with people, it can also negatively influence a number of important decisions in the workplace, including:

  • Recruitment
  • Promotion
  • Staff appraisals
  • Workload allocations

As well as being unfair, decisions based on unconscious biases are unlikely to be optimal and can result in missed opportunities.  Where unconscious bias also effects a protected characteristic, it can also be discriminatory.

How to mitigate unconscious bias

So, now you know what unconscious bias is, what can you do about it?

The good news is that it is possible to mitigate the effects of unconscious bias. The first step is to become more aware of the potential of unconscious bias to influence your own decision-making. Large organisations such as Google and the NHS are already providing unconscious bias training to their staff.

You can take this awareness further by taking an Implicit Association Test, such as that provided by Harvard University.  This will help to identify and understand your own personal biases.

Other ways to help reduce the influence of unconscious bias include:

  • Taking time to make decisions
  • Ensuring decisions are justified by evidence and the reasons for decisions are recorded
  • Working with a wider range of people and get to know them as individuals, such as different teams or colleagues based in a different location
  • Focusing on positive behaviours and not negative stereotypes

At the corporate level, ways that organisations can help to tackle unconscious bias include:

  • Implement policies and procedures which limit the influence of individual characteristics and preferences, including objective indicators, assessment and evaluation criteria and the use of structured interviews
  • Ensure that selection panels are diverse, containing both male and female selectors and a range other characteristics where possible (ethnicity, age, background etc.)
  • Promote counter-stereotypical images of underrepresented groups
  • Provide unconscious bias training workshops

Tackling unconscious bias is not just a moral obligation; it is essential if organisations are to be truly inclusive.  By making best use of the available talent, it can also help to make organisations be more efficient and competitive.

If you enjoyed this blog, you may also be interested in our other articles on management and organisational development.

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