Jobs demand hits record high

Scotland has seen its fastest rise in demand for permanent staff since a jobs survey was launched 14 years ago.

The latest IHS Markit jobs report signalled improving labour market conditions across the board, with sharp rises also recorded in worker placements and falling candidate availability all pointing to “robust conditions” for those working in the Scottish economy.

Demand for permanent staff grew at a faster rate than across the UK as a whole and, in terms of pay pressure, salary inflation also remained steep in May according to the report.

Meanwhile, Scottish recruitment consultancies recorded further steep growth in demand for temporary staff. Despite easing slightly, the rate of increase was close to the near-decade high seen in April’s survey.

Sector data indicated that staff demand rose fastest in IT and computing for both permanent and temporary roles.

The latest data showed that the number of available candidates for vacant positions in Scotland fell steeply, albeit at a slower rate than across the UK as a whole.

Tom Hadley, director of policy at the Recruitment and Employment Confederation, said the report highlighted the pressures employers were facing in recruiting staff.

“With demand for permanent staff in Scotland now at the highest level recorded in the survey’s 14-year history, the challenges facing the next government couldn’t be clearer. The number of people available to fill vacancies has plummeted, official data shows unemployment has dropped to the lowest level since 1975, and EU citizens are leaving the UK in droves. Employers are running out of options.”