According to the latest Bank of Scotland Labour Market Barometer, the jobs market in Scotland has continued to improve in the last month, but at a slower pace. The figures also show that the labour market north of the border had performed better than the rest of the UK for the third month in a row.
Recruitment agencies reported a continued rise in demand for new staff, but there were clear regional variations in the report. For instance, the largest rise in workers securing a job was in Dundee, while Edinburgh saw the largest rises in pay. But across the country, the rate of growth in vacancies for both permanent and temporary jobs was the slowest for a number of months.
According to Donald MacRae, the chief economist at Bank of Scotland, “The Scottish labour market improved in June, albeit at a slower rate than in previous months, providing further evidence of a slowing of the economy in quarter two of this year. Recruitment agencies reported a continuing rise in demand for new staff and a higher number of people securing jobs. However the rates of increase in vacancies available to both permanent and temporary workers were the lowest in five and nine months respectively.”
MacRae pointed out that permanent salaries had increased for the sixth consecutive month, but at a slower pace than in May. The number of permanent positions increased further in June, although the latest rise was the slowest in six months. Temporary staff billings also grew solidly, with the rate strengthening since May.
Commenting on the report, the Scottish finance and employment secretary John Swinney noted that it was “the third month in a row that the Scottish labour market has outperformed the UK as a whole - reflecting the labour market figures published last week showing employment in Scotland rising and unemployment falling at seven times the rate as in the rest of the UK.
“But the survey also shows that there can be absolutely no grounds for complacency.
“More needs to be done to support jobs, secure investment and boost economic activity across Scotland - and the report reinforces the need for a Plan B or flexibility from the UK government in order to strengthen growth and recovery.”
The Labour Market Barometer, compiled by Markit, is based on a monthly survey of more than 100 recruitment and employment consultants. It is calculated by measuring demand for staff, employment, availability for work and pay, and provides a snapshot of labour market conditions. It shows a solid improvement in Scotland's job market on this time last year.
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