Salaries jump on ‘steep’ rise in permanent and temp staff

● New report says IT and computing leading the way

Permanent and temporary staff appointments in Scotland showed a “steep increase” in July, with salary growth touching a ten-month high at the beginning of the third quarter of 2017, a new report shows today .

However, the positive data in the IHS Markit Report on Jobs: Scotlandcameasrecruitment & Employment Confederation (REC) chief executive Kevin Green warned that employers are “struggling” as European Union workers leave in the wake of last summer’s Brexit vote.

The survey of about 100 recruitment and employment agencies across Scotland last month found that the lift in the demand for staff was spearheaded by vacancies in the IT and computing sector, but both were behind the rate of growth for the UK overall.

The number of workers placed in permanent jobs rose again but at a marginally slower rate than the previous month and lower the UK as a whole.

Staff availability in Scotland fell in July with permanent staff declining at a steeper rate than temporary and contract workers.

One in five recruiters reported an increase in hourly pay rates for temporary and contract staff, while none reported a fall.

Green said: “Although slightly below the rest of the UK, permanent placements are rising rapidly in Scotland. Starting salaries are also increasing, so for workers who want to boost their earnings now is a good time to consider moving job.”

However, Green gave warning that although placements were rising rapidly in Scotland demand still remained at a multi-year high.

“It’s clear that employers are having to work even harder to fill jobs as vacancies rise and candidate availability shrinks. UK employment remains at an all-time high and looks set to keep improving,” he said.

“The parts of the economy most reliant on European workers are under even more pressure as many EU workers return home.”

The REC chief added that “employers are not just struggling to hire the brightest and the best but also people to fill roles such as chefs, drivers and warehouse workers.

“We can’t ignore the importance of our relationship with the EU to employers. If we want to keep our jobs market successful and vibrant, we must make it easier, not harder, for employers to access the people they need”.

The report said the availability of permanent staff in Scotland declined at a steeper pace than temporary/contract staff. Fashion retailer H&M is poised to open the doors of its “flagship” branch in Glasgow city centre next week. The Swedish chain said the store, at 185 Buchanan Street, will span more than 4,600 square metres when it opens on Thursday 17 August. To mark the launch, New York Brass Band will perform ahead of the doors opening at 11am. The first 500 customers in the queue will get goodie bags and a discount, while those spending more than £30 will be offered a free manicure.