THE pace of growth in Scotland's labour market has slowed slightly from the record of July but still showed strong expansion during August.

The Bank of Scotland Labour Market Barometer - a composite indicator designed to provide a single figure snapshot of conditions - posted a reading of 59.7 for the month.

That was behind the 60.3 recorded for July but the second highest reading since September 2007.

The Scottish figure for August was also ahead of the 58.9 for the UK as a whole.

Recruitment firms said the growth of permanent placements in August was unchanged from the record pace set in July.

There was also a further increase in temporary billings that increased at the strongest rate since May.

Greater client demand for staff and a general improvement in market conditions were highlighted as the main reasons for the results.

Donald MacRae, chief economist at Bank of Scotland, said: "August's Barometer was at the second highest level since September 2007.

"The number of people appointed to permanent jobs rose sharply, while the number of vacancies for permanent jobs increased at the strongest rate for over two years.

"There were marked increases in demand for staff in IT, computing, engineering and construction.

Rising business confidence is translating into increasing employment and a further strengthening of the recovery in the Scottish economy."

The strongest rise in permanent placements was in Aberdeen although salaries rose most quickly in Edinburgh.

Recruiters in Dundee had the fastest average increase in temporary billings with the city seeing the strongest increase in hourly pay for temps.

All sectors covered in the survey reported an increase in permanent vacancies in August with IT and computing leading the way and blue collar work at the bottom.

The only temporary category to see a decline was for executive and professional roles, while the nursing, medical and care sector saw its strongest expansion since 2003.