The latest Bank of Scotland Report on Jobs shows that the number of new permanent jobs in Scotland has fallen for the first time in six months. The jobs market did improve slightly but not as strongly as before. However, it also found there was more temporary work available, though it rose at a slower rate than in the past. The report added that the UK as a whole had fared better than Scotland – with some growth in permanent jobs last month.
The Bank’s Labour Market Barometer shows the rise and fall in job prospects by indicating its strength each month by use of a single figure. Anything above 50 indicates improving conditions compared to the previous month; anything below shows a deterioration. The latest figure – 51.2 – is down from the 53.9 recorded in January and 56 in December. It was also below the UK average of 53.1 for the first time in almost two years.
Bank of Scotland chief economist, Professor Donald MacRae, described the results as highlighting the fragile recovery from the recession. “The February barometer showed Scottish job market conditions continuing to improve but at a marginal rate,” he explained. “The number of people appointed to permanent jobs fell for the first time in six months, while the growth in vacancies for permanent jobs was the slowest for over a year. The rate of growth in vacancies for temporary jobs remained strong although slowing to a three-month low.”
Breaking down the results by region suggests that recruiters in Aberdeen and Edinburgh both reported a decline in the level of permanent placements last month. Glasgow was the only area to show a reduction in temporary staff as well. Recruitment consultancies there also said that they were offering lower starting salaries for permanent staff.
The data for wages and salaries suggested that there had been no change in the salaries offered to permanent staff in the last month, ending a four-month run of increases. Overall, average starting salaries stalled across Scotland with hourly pay rates for temporary staff falling.
Only three sectors posted a larger number of permanent job vacancies in February, led by IT and computing; the greatest increase in demand for temporary staff was in the nursing and medical care sectors. By contrast, demand for hotel and catering and secretarial and clerical staff dropped sharply.