IT demand boosts jobs market

Permanent staff appointments rose sharply last month in Scotland, underpinned by strong demand for IT workers, a report today reveals.

According to the latest IHS Markit Report on Jobs, Scottish recruitment agencies also signalled a substantial increase in billing receipts for temporary staff.

Demand for staff strengthened during April, with vacancies for both permanent and temporary workers rising markedly. However, the availability of candidates for short-term and permanent roles deteriorated, the latest report showed. Pay pressures remained “elevated” amid labour shortages and rising staff demand.

Newly-placed permanent staff were awarded higher starting salaries during the survey period. The rate of inflation, though sharp, remained close to March’s nine-month low.

Meanwhile, temp wage growth accelerated to a 12-month high. Notably, the latest increase in starting salaries and short-term pay north of the Border were only slightly softer than those seen at the national level.

Tom Hadley, director of policy at the Recruitment & Employment Confederation, said demand for IT staff in Scotland was running 6 per cent higher than the rest of the UK for permanent staff and 9 per cent higher for temporary workers.

He added: “For employers, the challenge is to stay ahead of the competition to maintain and enhance your workforce.

“This is about more than just pay, it is about providing progression opportunities and a positive workplace culture. As recruitment gets harder the only solution for employers is to get better at attracting and retaining the right skills and staff.”