15-30 MIN READ
The COVID-19 pandemic has provided a window into the social infrastructure which underpins much of daily life. Such provision includes health and medical services (nurses, doctors and social care staff), but also encompasses workers engaged in the provision and supply of food, water, energy and communications.
Many of these activities comprise part of what has been termed the Foundational Economy (FE) – the nation’s essential physical infrastructure, operating infrastructure and public services.
This briefing note provides an overview of the Foundational Economy, its importance to Glasgow City Region’s (GCR) economy and how it could shape policy in the future.
Key Findings
- The Foundational Economy covers a large part of Glasgow City Region’s economy. Over 60% of jobs and 40% of businesses within Glasgow City Region are within the Foundational Economy.
- It covers a significant proportion of low paid jobs in the economy. It is the part of economy that employs key workers.
- Focusing on productivity growth in the Foundational Economy offers a way of overcoming some of the challenges in ensuring economic growth is inclusive.
- Improvements in the Foundational Economy have the potential to be shared in communities across the Region and improve economic resilience.