Near-record increase in demand for permanent staff
17 February 2014
January’s Bank of Scotland Report on Jobs showed further marked increases in permanent and temporary staff placements. Driving job creation was a strengthening of demand for staff, with the latest rise in permanent vacancies a near-survey record. Combined with a further drop in candidate numbers, the pick-up in demand supported strong growth in staff pay, although rates of inflation in salaries and temp hourly rates eased since December.
The Bank of Scotland Labour Market Barometer – a composite indicator designed to provide a single figure snapshot of labour market conditions – posted 62.6 in January, signalling a further marked improvement in the health of Scotland’s labour market. The Barometer dipped slightly from December’s recent peak of 63.6, but was nevertheless above both its long-run average and the equivalent index for the UK as a whole.
Donald MacRae, Chief Economist at Bank of Scotland, commented:“January showed a further marked improvement in Scotland’s labour market returning the Barometer to pre-crisis levels of 2007. The number of people appointed to both permanent and temporary jobs increased rapidly while vacancies rose sharply across all sectors. Salaries rose strongly for those appointed to permanent jobs demonstrating increasing business confidence. The recovery in the Scottish economy is not only continuing but is strengthening as we enter 2014.”