The FINANCIAL — The Scottish labour market remained challenging in September. This was especially the case for candidates seeking permanent job roles, as the latest data from the Bank of Scotland Report on Jobs indicated further falls in vacancies and average salaries.
Moreover, the number of people placed in permanent job roles fell at the sharpest rate in thirteen months. In contrast, the Scottish temporary job market remained in a healthier state with the growth in demand for short-term employees remaining robust.
The Bank of Scotland Labour Market Barometer – a composite indicator designed to provide a single figure snapshot of labour market conditions – signalled deterioration for the fourth consecutive month. In September, the Barometer registered 46.8, down from 47.9 in August. The latest index reading was the lowest in eleven months. Scotland continued to underperform the UK overall by a considerable degree.
Donald MacRae, Chief Economist at Bank of Scotland, commented:
“The reduction in the number of permanent jobs available on the Scottish labour market, as well as a fall in the number of people actually placed in full time employment, is another indication of the dip in business confidence in Scotland. We are, however, continuing to see strong demand for temporary staff. The number of candidates placed in temporary positions rose at the strongest rate for three months, while the number of temporary vacancies rose for the 11th successive month.”
• Glasgow-based recruiters registered the fastest growth in permanent job placements, whilst those in Edinburgh saw the sharpest rise in temporary staff billings.
• Average permanent salaries fell in three out of the four Scottish regions. Dundee experienced the sharpest fall in salaries and Glasgow saw the fastest deterioration in temp hourly pay rates.
• The fastest rise of available permanent employees was recorded in Glasgow. Aberdeen had the largest increase in temp availability for the second consecutive month.
Wages and salaries
• Average salaries awarded to successful permanent candidates fell for the fourth successive month in September. Furthermore, the latest decline was the sharpest since November 2009.
• Hourly pay rates for temporary workers fell for the second consecutive month.
• The number of people placed in permanent jobs in September fell for the third successive month and at the fastest pace since August 2009.
• In contrast, the number of candidates placed in temporary positions rose at the strongest rate for three months.
• September data indicated that demand for permanent staff decreased at the fastest pace since October 2009.
• In the temporary sector, demand for staff rose for the eleventh successive month.
• The availability of candidates seeking permanent jobs increased for the thirtieth consecutive month in September and at a solid pace.
• Similarly, the availability of temporary staff continued to rise in September extending the current period of expansion to twenty-seven months. Although still substantial, the rate of increase slowed since August to a four-month low.
• In September, five out of the eight monitored employment categories posted increased vacancies for permanent staff. The strongest rise was recorded in the IT & Computing sector which continued to grow at a marked rate.
• All eight monitored employment sectors saw higher demand for temporary workers during September. IT & Computing employees continued to be the most sought-after for the eleventh month running.
Permanent Staff Temporary/Contract Staff
1 IT & Computing 1 IT & Computing
2 Hotel & Catering 2 Hotel & Catering
3 Executive & Professional 3 Engineering & Construction
4 Engineering & Construction 4 Executive & Professional
5 Nursing/Medical/Care 5 Blue Collar
6 Accounts & Financial 6 Nursing/Medical/Care
7 Secretarial & Clerical 7 Secretarial & Clerical
8 Blue Collar 8 Accounts & Financial