THE weakest rise in permanent staff placements in Scotland for more than two years has been recorded by recruitment consultancies, amid signs of a deterioration in the Aberdeen labour market.
In the latest monthly Bank of Scotland report on jobs, which covers April, the 35 per cent of respondents reporting a rise in permanent appointments was only slightly greater than the 32 per cent reporting a decline. The survey showed the weakest rise in permanent placements for 26 months.
Bank of Scotland noted that, in contrast, growth of permanent placements in the UK as a whole had in April accelerated to its fastest pace in eight months.
And average weekly billings for temporary or contract staff in Scotland in April grew at only a "marginal" pace.
Overall, the Bank of Scotland barometer for the labour market north of the Border, at 59.1 in April, was at its lowest for 22 months. It was down from 60.6 in March. However, it remained significantly above the level of 50 deemed to separate expansion from contraction.
The labour market in Aberdeen has been hit in recent times by lower oil prices, with a raft of companies announcing cuts in staff numbers and, in some cases, reductions in pay rates.
Pressures on the labour market in Aberdeen are underlined in the latest Bank of Scotland survey, in terms of falls in both permanent and temporary staff placements and a rise in the availability of candidates for jobs.
Edinburgh recorded the strongest increase in permanent placements and Dundee the largest rise in billings for temporary staff, while Aberdeen saw declines on both fronts.
The availability of permanent and temporary candidates fell fastest in Glasgow and Edinburgh respectively, while Aberdeen registered a broadly-based rise in candidate supply.
Donald MacRae, chief economist at Bank of Scotland, said: "Scotland's labour market continued to improve in the month. The number of people appointed to both permanent and temporary jobs rose modestly, while the number of vacancies increased in the month.
"These results suggest the Scottish economy continued to grow, albeit at a modest pace, in April."
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