Scotland's population is falling

First Minister Jack McConnell was due to outline the move in a speech in Edinburgh, disclosing that talks were already under way with the Home Office.

As bright youngsters apply for work permits, they will be asked to consider the merits of Scotland.

Other moves being considered are ways of promoting Scotland abroad as a desirable place to live for high flyers.

No details have been decided, but the promotion is likely to be aimed at parts of the world with large numbers of well-educated and technologically-savvy youngsters such as south-east Asia, the US and the Indian subcontinent.

2001 census Scotland's population was 5,062,011 The population had fallen 2% compared to 1981 The number of Scots youngsters under-15 fell by 18% The number of over-75s increased by 29%

In a third prong of the campaign, officials will examine ways of targeting the student population so that more youngsters - both home-grown and from overseas - can be tempted to stay on in Scotland after graduating.

The plans were being disclosed by Mr McConnell in a speech on the economy and the prospects for Scotland's cities.

He has repeatedly identified Scotland's falling population as an area of potential economic concern for the future.

On a visit to Sweden last year, he had talks with Prime Minister Goran Persson on how that country has developed policies like better childcare to counter the problem.

'Healthy economy'

Mr McConnell argues that an ageing demographic profile and shrinking population also pose more subtle dangers, like a lack of diversity and a lessening of confidence.

"There is a strong economic and social case for increasing Scotland's population," he said.

"An economy that attracts and retains its key resource - people - is a healthy economy.

"That's why I am determined we will act now to attract talent, and retain talent in Scotland."