Scottish salaries rise sharply but rate of placements slows -BoS

bankOfScotlandLogoStaff placements in Scotland continued to grow during March but at a slower pace as starting salaries rose sharply driven by a lack of candidates, according to the Bank of Scotland’s latest report on jobs.

The Edinburgh-based bank, whose survey found salaries eased to a 15-month low in February, recorded a rate of growth in starting salaries that accelerated in March to the strongest in 2015 so far.

While permanent salaries rose sharply, average hourly rates of pay for temporary and contract staff in were unchanged from February.

Demand for permanent staff north of the border continued to increase in March, and at a strong rate but temporary staff demand sank to its weakest since March 2013.

While demand for staff remained on an upward trend, albeit at a slower rate during March, Dundee saw the sharpest increases in both permanent placements and temp billings while Aberdeen endured further decreases as the effects of global oil prices continued to take their toll.

Edinburgh registered the fastest rise in permanent starting salaries ahead of Dundee, with the latter leading growth in hourly pay rates for temporary staff.

The most marked deterioration in permanent candidate availability was recorded in Glasgow, while the latest decline in temp candidate numbers was centred on the Capital.

Highlighting an overall improvement in the health of Scotland’s labour market, the Bank of Scotland Labour Market Barometer registered 60.6 in March, up from 59.8 in February.

Donald McRae
Donald McRae

It was the barometer’s highest reading in three months but remained below the corresponding index for the UK as a whole.

Donald MacRae, chief economist at Bank of Scotland, said: “Conditions in the Scottish labour market continued to improve in March this year. The number of people appointed to jobs increased while the number of vacancies grew over the month. The rate of growth in starting salaries for permanent jobs recovered strongly from February’s 15-month low. This Barometer suggests the slowdown in growth in January to March will be reversed in the coming months.”

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