- Bank of Scotland Labour Market Barometer highest since September 2007
- Permanent placements rise markedly; temp billings increase moderately
- Aberdeen posts strongest increases in both permanent and temporary staff appointments
The latest Bank of Scotland Report on Jobs signalled the sharpest rise in permanent staff placements in the ten-and-a-half year survey history in July. The marked rise in permanent appointments – reflecting greater market activity and higher demand – contrasted with a more modest increase in temp billings. Concurrently, the availability of permanent staff deteriorated at the sharpest pace since June 2007 and average salaries rose at a strong, albeit weaker rate.
At 60.3, the July Bank of Scotland Labour Market Barometer – a composite indicator designed to provide a single figure snapshot of labour market conditions – rose to its highest level since September 2007. The Barometer, posting above the 50.0 no-change mark and up from 58.5 in June, suggested a marked improvement in Scottish job market conditions.
Donald MacRae, Chief Economist at Bank of Scotland, commented: “July’s Barometer rose to its highest level since September 2007. The number of people appointed to permanent jobs rose markedly while the number of vacancies for both permanent and temporary jobs increased strongly. Vacancy growth was marked in the engineering and construction sector. These results suggest rising business confidence is translating into a continuation of the recovery in the Scottish economy this summer.”
Regional analysis
Aberdeen-based recruiters recorded the strongest increases in both permanent and temporary staff placements.
Permanent staff availability deteriorated to the greatest extent in Glasgow, while Aberdeen saw the strongest fall in temp availability.
The fastest rates of inflation for permanent salaries and temp hourly pay were recorded in Edinburgh and Dundee respectively.
Wages and salaries
Permanent salaries rose for the fifth consecutive month in July, although the rate of inflation eased slightly from a near six-year peak in June.
Temp hourly pay rates increased at the joint-sharpest pace since data collection began in January 2003.
Employment
Permanent staff appointments made by Scottish recruiters rose markedly in July, and at the fastest rate in the ten-and-a-half year series history.
Average billings from temporary staff increased modestly and at the weakest pace since March.
Vacancies
The number of permanent job vacancies grew strongly in July, albeit at a weaker pace than June’s 14-month high.
Scottish recruitment agencies reported a sharp rise in demand for temporary staff, with vacancy growth accelerating to a 31-month high.
Availability
There was a marked deterioration in the availability of permanent staff, with the rate of decline the sharpest for over six years.
The number of candidates seeking temporary work fell for the third consecutive month in July, and at the strongest pace since December 2004.
Sectors
Demand for permanent staff increased in seven employment sectors during July, led by IT & Computing. The only sector to see a reduction was Blue Collar, ending a two-month sequence of growth.
Seven employment sectors posted a larger number of temp vacancies in July, led by the Nursing/Medical/Care sector. A smaller number of vacancies was only recorded in the Executive & Professional sector, with the rate of decline the strongest since September 2009.
