Scottish rural areas struggle with declining workforce by 2029
- The EY Item Club report reveals that the working-age population is declining in most Scottish local authorities.
- Urban areas are also affected, with notable declines in locations like Inverclyde and parts of Lanarkshire and Ayrshire.
- This situation underscores the need for strategic responses to address workforce challenges in rural areas.
In Scotland, a report by the EY Item Club indicates that many local authorities are facing a significant decline in their working-age population. This decline affects nearly two-thirds of the council areas, with some areas projected to see a decrease of almost five percentage points by 2029. Particularly acute declines are being noted in rural and island regions, where the impact of reduced workforce numbers is felt more severely. However, urban locations, including certain parts of Inverclyde, Lanarkshire, and Ayrshire, are also experiencing workforce reductions. Notably, this decline contrasts with the trends observed in Scotland's four largest cities, which are anticipated to see an increase in employment. The urban centers and their commuting areas are projected to experience growth in the working-age population, primarily driven by net migration. Overall, while the demographics in rural Scottish areas are shrinking, the larger cities are poised for growth, leading to a nuanced labor market landscape across the country. This divergence paints a complex picture of Scotland's future workforce, highlighting the need for targeted economic strategies to address the challenges faced by rural areas while capitalizing on urban growth.