THERE is further bad news for Scottish job seekers today with analysis from the Bank of Scotland that shows the labour market is weakening north of the Border and could fall into line with the rest of the UK.

The latest Bank of Scotland Report on Jobs found that the Scottish employment market improved slightly in September and was stronger than the UK as a whole.

However, the rate of improvement was at its weakest level since January.

Notably, staff appointments increased at the slowest pace since October 2010.

Donald MacRae, chief economist at Bank of Scotland, said: “These data show a welcome further improvement in the Scottish labour market in September with Scotland outperforming the UK for the sixth successive month. However, the rate of improvement has slowed to its weakest for eight months. Given the slowdown in the developed and European economies it may be challenging to maintain both the improving trend and the difference with the UK into 2012.”

Bank of Scotland’s findings come days after the publication of the latest jobs data from the Office of National Statistics that showed unemployment in Scotland rose by 7000 to 212,000 between June and August.

However, while the unemployment rate rose 30 basis points to 7.9% it is still ahead of the UK rate which was up 40 points to 8.1%.

Bank of Scotland’s report, compiled by Markit and based on a monthly survey of more than 100 recruitment consultants, disclosed that agencies placed a larger number of candidates into permanent work.

However, the rate of increase was the weakest in 11 months. Temporary staff postings also increased, but at the slowest pace in four months.

The report found that salaries awarded to permanent staff in Scotland grew at the fastest pace in four months.

Hourly pay for temp staff increased for the 12th consecutive month, but the rate of wage inflation was the slowest since January.

The highest rates of wage inflation in the permanent and labour markets were found in Edinburgh.

Dundee-based recruitment agencies posted the strongest rise in permanent staff placements during September. Glasgow registered the fastest increase in temp staff billings.

Permanent and temporary candidate availability grew at the strongest rates in Glasgow and Aberdeen respectively.