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The downturn has had a dramatic effect on the global labour market, with rising unemployment in France, Japan and the USA. Edinburgh is clearly not immune to the effects of the credit crunch. In the nine months from April last year to January this year claimant unemployment has increased by 40% (Scotland 48%). Expect these figures to worsen over the next six months.
Not only are the days of cheap credit over, but the Scottish economy faces a distinct squeeze on government spending in the next few years. Traditional stalwarts of the Scottish economy such as financial services and oil and gas are facing unprecedented conditions. After years of vigorous expansion, financial services in Scotland faces a time of consolidation and concentration. There are, however, encouraging signs in other key sectors. The tourism industry has been bolstered by new hotel announcements and the ongoing expansion of Edinburgh Airport.
In the pain of recession, which global cities will emerge as winners? Edinburgh’s facilities and assets, be they infrastructure, universities or a highly educated workforce, will continue to ensure the city remains the power-house of the Scottish economy, an attractive location for investment and a centre of innovation. It already enjoys a commanding position in the new and burgeoning life sciences industry with the Edinburgh BioQuarter, the largest life sciences development in the UK, set to create thousands of new jobs over the next 15 years.
This industry, with growing demand world-wide, is ideally suited to Edinburgh, a city that can meet its requirements for a location complete with educated workforce, proximity to world-class universities and a co-operative National Health Service (NHS). Life goes on and so do life sciences. Good news for Edinburgh.
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