Scotland needs a more adaptable workforce to build a strong economy

I recently had the privilege of chairing a panel session at the Scotland 2050 conference in Edinburgh. My panellists, Professor Anton Muscatelli of the University of Glasgow, Charandeep Singh, CEO of Scottish Chambers of Commerce, Lesley Smillie of Deloitte, and Daniel Coleman of Forth Advisory, discussed Scotland’s future economy as part of the event.

They agreed the future workforce is a core economic priority. We need a resilient and adaptable workforce, one which requires long-term investment in education and training, provides flexible routes into work and offers systems that recognise different forms of learning.

Incentives may be required to attract and retain talent. Panellists referenced with approval the system in Portugal designed to directly address high rates of emigration (and resulting brain drain). Young workers receive a 100 per cent tax exemption in the first year of employment, tapering to 25 per cent (years eight-ten). That scheme has had a demonstrable effect on talent retention and return migration within the Portuguese economy. Arguably, Scotland needs to be similarly bold and innovative in its approach.

However, a note of caution was evident in relation to recruitment practices which increasingly rely on AI. On balance, there was collective agreement that retaining the human element of recruitment is important, helping to ensure workplaces remain vibrant, diverse and inclusive.

The digital economy was also keenly discussed as a priority growth area for the Scottish economy, and one where this nation already has strength. It was felt that it’s an industry in need of prioritisation with a joined-up strategy which will allow businesses to adopt AI, strengthen cyber resilience and improve their digital skills.

Crucially, digital transformation shouldn’t be treated as relevant only to the tech industry but as a key tool to realising higher productivity across Scotland’s economy, including manufacturing and professional services. At Shoosmiths the use of digital tools is already part of day-to-day practice. I believe we are ahead of the curve in our profession with our Shoosmiths Eight offering and contract review product, Cia. Our ongoing investment has shown digital adoption can reduce time spent on routine legal processes, improve consistency and allow greater focus on analysis, judgment and client-facing work. Beyond law, Scotland will also need to adopt new technologies more effectively to achieve faster growth and stronger regional economies.

However, while the digital economy is prioritised, strategies must also be in place to ensure swathes of our population are not left behind. Skills development will be essential and will require support from further and higher education institutions. This will be key to creating a workforce capable of capitalising on the new economy. With productivity performance uneven across Scotland, the panel emphasised that to ensure the whole country benefits from digital transformation and skills, strategies must be created at regional level.

In summary, our session at Scotland 2050 told a consistent story. Scotland’s economic future will be shaped by whether it can build a skilled and adaptable workforce, while helping businesses across the country to adopt digital technology and AI to raise productivity. In turn, this will allow Scotland to compete internationally and create the next generation of high-value jobs and economic growth.

Andrew Foyle is a Partner and Solicitor Advocate at Shoosmiths in Scotland