ABERDEENSHIRE

	Area Profile

The north of Scotland is currently one of the most prosperous regional economies in Britain. Aberdeen City and Shire combined has a poulation of 440,000 and an unemployment rate that is one of the lowest in Scotland - consistently under 2%.

It is fortunate to have benefited from the discovery of north sea oil and at its peak, in the mid 1980's the oil and gas industry employed as many as 54,000 people.

By 1996, however, the figure had dropped to 46,000 and currently sits at around 41,000. Forecasts indicate that it will continue to drop by another over the next decade.

The area is recognised for its outward looking, pioneering spirit and enjoys high economic activity, with a GDP growth rate above the Scottish average. It boasts the second highest rate of business formation and Aberdeen has the most knowledge based businesses in Scotland.

Main employment sectors:

• Tourism and Distribution (56,000),
• Public Administration, Education & Health (48,000),
• Oil and Gas (41,000)
• Banking, Finance & Insurance (38,000),
• Manufacturing (11,600),
• Agriculture, Food and Fish Processing (8,500),
• ICT (5,000),
• Construction (5,000),
• Paper Making (3,000).

The wealth which this industry has brought to the region is reflected in many positive ways, especially in and around the city of Aberdeen: low unemployment, high consumer spending, a construction boom, in-migration and opportunities for investment, to name but a few.

These aspects bring with them certain pressures around the city edge: high house prices, increasing population densities, traffic and infrastructure burdens, lack of available land, exaggerated social divides and some inevitable environmental losses.

The economic picture for Aberdeenshire is also far from consistent throughout the area. The sphere of influence of Aberdeen City, the regional centre, remains strong within a hinterland radius of around 30-40 miles, or easy commuting distance. To the far west, the region benefits greatly from its scenic beauty, Royal history and access to the Grampians. To the far north, however, the decline of traditional industries, combined with a continued publicising of 'bad image', has caused problems for the northern coastal area with average household incomes lower than the UK and Aberdeenshire averages. There are also pockets of deprivation in Peterhead and Fraserburgh such as poor health.

The Aberdeenshire area is predominantly rural in nature, with a dispersal of important commercial centres and the changing nature of our towns and villages through the loss of essential services continues to be an issue.

The long term solution is to broaden the economic base, both sectoral to reduce the dependence on oil and gas, and geographically, to distribute the benefits of economic prosperity throughout the area. This requires encouraging employment opportunities beyond Aberdeen and directing public resources to less prosperous parts of the region.

	Aberdeenshire Links

> Aberdeenshire Council

> Aberdeen City & Shire

> Aberdeen and Grampian Tourist Board