SCOTTISH labour market conditions continued to deteriorate in January, with a further significant decline in permanent staff placements by recruitment agencies, a survey shows.
The Recruitment & Employment Confederation, publishing the results of its latest monthly survey today, highlights the contrast between its findings for Scotland and the UK as a whole. It notes that, in the UK as a whole, there was a marked rise in permanent staff placements last month.
The decline in permanent staff placements in Scotland in January was only marginally less steep than in December, during which they fell at the fastest pace in 90 months.
Permanent staff placements north of the Border have now declined in each of the last four months.
REC chief executive Kevin Green said: “Scotland’s economy is not as strong as the rest of the UK. The energy sector has weakened, and ongoing political uncertainty is affecting business confidence.”
The survey, conducted by Markit, shows salary inflation for permanent staff in Scotland accelerated in January, picking up from a 46-month low in December.
However, REC emphasised the rate of wage growth for permanent placements remained weaker than the UK average.
Hourly pay rates for temporary staff in Scotland rose last month, but the pace of wage inflation eased to the weakest since October, according to the survey.
The number of permanent job vacancies in Scotland increased further in January, the survey shows. The pace of growth of vacancies remained relatively marked, but weakened for a third successive month, REC noted.
The nursing, medical and care categories showed the sharpest rise in demand for permanent and temporary staff.
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