SCOTLAND'S job market has recovered in December amid a sharp rise in permanent placements and starting salaries, signalling hopes the economic recovery will continue into 2015.

But while there was some rebound from a 14-month low in November, the market remained adrift of its mid-year peak as 2014 drew to a close.

The Bank of Scotland Labour Market barometer, a composite indicator based on demand for staff, employment, availability for work and pay in permanent and temporary roles, read 63.2 in December.

The reading marked a significant improvement on November's 60.1 and took Scotland back above the index for the UK as a whole, which sank to a 13-month low of 61.8 in December.

But despite the recovery the reading trailed the mid-2014 peak, which saw readings of 67.3 and 67.1 in July and August.

The seasonally adjusted survey is based on the views of around 100 recruitment and employment consultants. A reading of 50 indicates no change in the labour market.

A sharp rise in permanent placements alongside a near-record spike in starting salaries drove the recovery in December.

The report found the number of people placed in permanent jobs in Scotland grew at a faster rate than in November, extending the growth sequence to 22 months.

Employers seeking IT and computing staff saw the biggest rise in demand for permanent staff, followed by the executive and professional category, while the nursing, medical and care sectors had the highest demand for temporary workers.

The executive and professional segment showed the weakest demand for temporary staff.

About 44 per cent of recruitment consultancies reported an increased in the number of people placed in permanent roles in December compared with the previous month, contrasting with the 31 per cent which registered a fall.

This gave a seasonally-adjusted reading of 58.3 on the staff placement index, up from 55.1 in November but trailing the 68.4 reading of July.

But while demand for staff grew in December, candidate availability remained in decline: nearly half (49 per cent) of respondents reported lower permanent candidate availability, while nine per cent registered a rise.

And there were signs of slowing momentum in the temporary jobs market, as billings from contract staff rose at the slowest rate in eight months and hourly wage inflation eased.

Recruitment firms said they received only a slight increase in billings from temporary and contract staff in December, reflected by a seasonally adjusted reading of just more than 50.

This was the second-lowest level in 21 months, with the reading having fallen every month since August.

Lower temporary candidate availability has now been reported for 20 months in a row.

On pay, the seasonally adjusted permanent salaries index rebounded to a five-month high in December, coming in at just below July's survey record.

It signalled a sharp month on month increase in starting salaries for permanent workers, as more than 38 per cent of respondents reported a rise in average salaries. There were no reports of salaries decreasing. In addition, the acceleration of salary growth in Scotland saw it increase its lead over the UK as whole, which saw strong but slower growth in permanent pay.

Meanwhile hourly pay rates for temporary staff in Scotland grew at the slowest rate since September. Wage inflation grew to a three-month high across the UK as a whole.

Donald MacRae, chief economist at Bank of Scotland, said: "December's Barometer reversed much of the loss in November with the overall reading at 63.2 showing a strong performance in the month.

"These results provide further evidence that the economic recovery at the end of last year and looks set to carry on into 2015."