July sees record increases in permanent placements and starting salaries
18 August 2014
The recovery in Scotland’s labour market moved up a gear in July. The latest Bank of Scotland Report on Jobs showed survey-record increases in both the number of permanent placements and starting salaries. Strong and broad-based demand for staff continued to drive the upturn. One cause for concern was a further sharp drop in the number of candidates for vacancies, the level of which has fallen continuously since early-2012.
The Bank of Scotland Labour Market Barometer – a composite indicator designed to provide a single figure snapshot of labour market conditions – climbed to a fresh survey-record high of 67.3 in July, up from 65.1 in June. The barometer was above the equivalent UK index for the first time in four months, albeit only fractionally.
Donald MacRae, Chief Economist at Bank of Scotland, commented: “July’s Barometer provided further proof of the continuing recovery. The month saw survey-record increases in both the number of people appointed to permanent jobs and in starting salaries. Demand for both permanent and temporary staff was expressed by a surge in vacancies accompanied by a drop in the number of candidates available. These trends should lead to further gains in employment and eventually to an increase in overall earnings growth. The Scottish economy continues to recover strongly.”