PERMANENT staff placements in Scotland by recruitment agencies rose in February, following four consecutive months of decline, but the pace of increase was modest, a survey shows.
Meanwhile, pay was driven higher by a lack of available candidates for jobs.
The rate of increase in permanent staff placements in Scotland last month was slightly weaker than that in the UK as a whole, according to the survey published today by the Recruitment & Employment Confederation (REC). Billings for temporary and contract workers in Scotland meanwhile rose in February at the fastest pace in 14 months.
Although starting salaries for staff placed in permanent jobs in Scotland rose in February at the sharpest rate in five months, the pace of increase trailed that in the UK as a whole. Hourly rates of pay for temporary workers in Scotland also rose in February, and at a faster pace than in January.
REC said: “One factor leading firms to improve their pay packets was a lack of available candidates for vacant positions in February. Declines in staff availability were evident for both permanent and temporary job roles. In fact, the latest fall in short-term candidate availability was the fastest seen in a year.”
Kevin Green, chief executive of REC, said: “There are tentative signs that the labour market in Scotland is improving. This is good news, but a further decline in candidate availability is an ongoing cause for concern.”
He added: “We’re already seeing acute staff shortages in a variety of sectors, from healthcare to engineering.”
Highlighting uncertainty for people from other European Union countries living in the UK about the post-Brexit situation, given the UK Government’s current stance, he warned staff shortages were likely to get worse.
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