Economy

As Scotland continues to grapple with economic uncertainty, the Understanding Scotland Economy Tracker remains a vital tool for capturing how people are experiencing and interpreting the nations’s shifting landscape. This latest wave reveals a public still deeply concerned about the future, but with subtle signs of stabilisation in how current conditions are perceived. Understanding Scotland Economy Tracker is produced in partnership with the David Hume Institute.

Economy

This edition of Understanding Scotland brings you insights from over 2,000 members of the adult (16+) Scottish public on the most important aspects of our society and economy.

This wave of the Understanding Scotland Economy Tracker largely cements the trends of previous waves, illustrating a public that is concerned with the country’s overall direction of travel.

While healthcare and the cost of living remain the most important issues to Scots, this quarter shows another modest uptick in the salience of immigration as an important issue. This quarter represents the second wave where immigration is the third most frequently mentioned issue.

Pessimism about the economy remains high in this wave of Understanding Scotland, with a modest erosion in public confidence since August. In November, a greater proportion of respondents say that they expect the overall economy and their own financial situation to be much worse in 12 months than they are now. A similar pattern emerges when looking backwards, with a greater proportion reporting that both the economy in general and their personal finances have worsened compared to this time last year.

Concerns with money matters remain largely stagnant from last quarter, but strikingly, half of Scots still report reducing non-essential spending, cutting back on leisure activities and reducing heating and energy use in the last twelve months. Financial worries continue to have a tangible impact on many Scots, with three in ten reporting detriments to their mental health (28%) and a quarter losing sleep (25%).

Turning to perceptions of work and income, respondents tend to report greater levels of satisfaction with their employment security and hours than they do with their income in general and ability to cover the cost of living. Demographic patterns emerge from these findings, including associations between age and social class.

This wave of Understanding Scotland included questions related to the labour market, which elicited pessimism from respondents. In general, Scots lack confidence in the ability of wages to keep up with inflation. They also generally believe that there will not be expansion of job opportunities in Scotland over the next year. When it comes to training and skills, Scots frequently believe they would need to reskill in order to get a new job, with many also reporting that their employer has not provided them with any training since their induction.