There are further signs of a pick-up in the Scottish labour market, with demand for permanent staff rising last month at its fastest pace since January.

Permanent salaries increased at the sharpest rate for five years, according to the latest Bank of Scotland Report on Jobs.

The report's labour market barometer, a composite indicator designed to provide a snapshot of labour market conditions, indicated a strong improvement in Scottish labour market conditions in May. It rose for the third month in a row to 54.7, its highest level since last December, and was above the equivalent index for the UK as a whole of 52.4, which was a three-month high.

Donald MacRae, chief economist at Bank of Scotland, commented: "These results provide further evidence that business confidence is slowly being restored enabling the Scottish economy to record much sought-after growth during 2013."

It found the strongest rise in permanent placements was in Aberdeen, while Dundee saw the fastest rise in temp billings.The availability of permanent and temporary staff fell to the greatest extent in Edinburgh and then Dundee. Aberdeen posted the strongest rise in permanent salaries in May, while Glasgow saw the fastest rise in temp hourly pay.

Average pay for permanent staff rose strongly, with the rate of inflation the fastest since May 2008. Temp hourly wages increased for the third consecutive month and at the strongest pace in 2013 so far. Seven sectors posted a higher number of permanent job vacancies in May, led by IT and computing.