\n READ MORE: Robbie Mochrie: Productive investment beats speculating<\/a>\n<\/p>\n \n Scottish exports as a share of GDP declined by two points, from 22.1% in 2022 to 20.1% in 2023. \u201cInterestingly, this is exactly equal to the long-term trend (1998-2023),\u201d the report noted.\n<\/p>\n \n Elsewhere, Scotland was found to have the \u201chighest percentage of the working-age population with higher education certificates or above at 53.7%, surpassing the UK average of 47.1%\u201d.\n<\/p>\n \n The report goes on: \u201cThere has been a significant increase in higher education attainment in Scotland, rising from 30.2% in 2004 to 53.7% in 2024, indicating a strong long-term upward trend.\n<\/p>\n \n \u201cHowever, between 2023 and 2024, there was a slight dip in the percentage of the high skilled working age population of 1.4% from 55.1% in 2023 to 53.7% in 2024.\n<\/p>\n \n \u201cIn comparison, England’s higher education attainment stands at 47.1%, Northern Ireland at 42.2%, and Wales at 44%, with all showing increases but still trailing Scotland in 2024. The only region of the UK with a higher level of educational attainment is London with 61.7% of the working age population holding a Higher Certificate or above.\u201d\n<\/p>\n \n \n However, there were skills shortages reported. The CBI\u2013Addleshaw Goddard index found that 7% of Scottish employers had at least one vacancy in 2024 due to a skills shortage, a rise of four points from 2011\u2019s 3%. Since 2022, the rate has dropped three points from 10%.\n<\/p>\n \n The report also shows that 34.3% of the economically inactive people in Scotland in 2024 were off work due to long-term illness, an increase of 2.7 points on 2023 and above the UK average of 28.6%.\n<\/p>\n \n Meanwhile, the share of Scotland\u2019s \u201cworking age\u201d population \u2013 people age 16-64 \u2013 fell 0.11 points to 63.3%, which is 1.44 points below the 2004-2024 average.\n<\/p>\n \n \u201cDespite this, Scotland continues to have a marginally higher proportion of working-age people than the UK overall,\u201d the report adds.\n<\/p>\n \n In a foreword, Mairi Spowage, the director of the Fraser of Allander Institute, said: \u201cThe labour market remains resilient but uneven. Scotland retains one of the most highly qualified workforces in the UK, with more than half of working-age adults holding higher-education credentials. However, a rising share of economic inactivity due to long-term ill health underscores the need to integrate health and wellbeing more centrally into the productivity agenda.\n<\/p>\n \n READ MORE: ‘A lot of anger’: Fury as top Scottish university to axe 76 jobs<\/a>\n<\/p>\n \n \u201cLikewise, while the proportion of employers reporting skills shortages has fallen, under-utilisation of existing staff remains elevated, suggesting that better deployment of Scotland\u2019s existing talent base is as important as attracting new skills.\u201d\n<\/p>\n \n She added: \u201cProductivity growth remains the single most important driver of sustainable prosperity. By focusing on the practical enablers \u2013 investment, innovation, and inclusion \u2013 Scotland can convert its strong foundations into a more dynamic, competitive, and equitable economy over the decade ahead.\u201d\n<\/p>\n \n Deputy First Minister Kate Forbes<\/a> said the report \u201cshows the strength of Scotland\u2019s economy, and that real progress is being made in areas in which the Scottish Government<\/a> holds full powers, including educational attainment and business<\/a> investment\u201d.\n<\/p>\nProfessor Mairi Spowage, director of the Fraser of Allander Institute, said productivity growth was key (Image: Colin Mearns)\n<\/p>\n