Rise in temps down to Brexit
Scottish businesses are hiring more temporary staff due to the uncertainty of Brexit, Royal Bank chief economist Sebastian Burnside said yesterday.
He claimed the UK’s planned exit from the European Union had caused more firms to fill posts with temporary staff due to a lack of longterm clarity.
As part of its recent Report on Jobs, RBS found the decline of permanent placements continued for the third month in a row during September, with the number of temporary placements rising during the same period.
The report is compiled by asking 100 companies if they feel certain parts of the jobs market have changed in the past month.
Researchers collate each answer into an index number between zero and 100, with 50
“Uncertainty is weighing on business confidence”
meaning no change, above 50 meaning an upward shift and below 50 meaning a downward trend.
For the number of permanent placements, the number has fallen from 48.8 in August to 47.4 last month.
The drop in permanent work was the sharpest monthly decline since January 2017.
The index for the number of billings received by recruitment agencies continued to rise, although the jump was less sharp than in August, at 56.
A number of panellists asked for their input said uncertainty – particularly around Brexit – had impacted hiring decisions.
Fair work and skills minister Jamie Hepburn said: “This report continues to signal Brexit uncertainty is weighing on business confidence and activity in Scotland.”