Bounce in Scottish jobs market

Scottish labour market conditions improved sharply in August with both permanent staff placements and temp billings rising “markedly”, a new survey out today says.

Employer demand for staff remains strong, spearheaded by IT and computing, says the latest IHS Markit Report on Jobs in Scotland, produced for the Recruitment and Employment Confederation (REC).

The report said pay pressures in Scotland had softened slightly in August “but remain elevated”. In the wider UK, it says employers are having to offer higher wages to secure skilled workers.

The UK research found that the number of candidates for jobs is falling, while demand has risen at its fastest in more than two years.

The report for north of the Border noted: “Recruitment consultancies reported sharp increases in permanent placements and staff demand, while pay pressures remained marked.”

It added: “The rate of expansion accelerated slightly since July, but remained below that recorded for the UK as a whole.” Scottish pay pressures eased marginally, the report said.

REC chief executive Kevin Green said: “As this month’s report clearly shows, employers are increasingly turning to recruitment agencies as it becomes harder to find the people to fill the jobs available.

“Businesses are seeking more professional and managerial capability, so we’re seeing high demand for roles like financial directors, analysts, and compliance and HR professionals.

“Meanwhile, there is a significant shortage of people to fill blue collar roles such as drivers, electricians, and construction workers, and this is being exacerbated by a fall in net migration from the EU.”