BREXIT has been partly blamed for a drop in numbers of job candidates available in a new report.
The Royal Bank of Scotland Report on Jobs said further marked increases in permanent placements and temporary billings were signalled by recruiters, with the rates of growth remaining close to their respective series records, despite easing since August.
Demand for workers remained strong while growth of vacancies for permanent and temporary staff continued to rise rapidly and, at the same time, the availability of candidates plummeted again, the report found.
It meant pay pressures intensified, with the rate of starters’ salary inflation hitting a fresh survey record.
During September recruiters in Scotland reported a further increase in the number of permanent staff appointments, and the month’s data pointed to another steep upturn in temporary billings across the country.
September data highlighted a sustained decrease in the availability of permanent candidates in Scotland, extending the current sequence of reduction which began in February. The rate of decline accelerated on the month and was the second-fastest on record, behind August 2014.
Respondents attributed the latest fall to Brexit and lingering uncertainty among candidates connected to switching roles amid the ongoing pandemic.
However, Scotland registered a slower drop in permanent candidate supply than the UK as a whole during September.
For the seventh time in as many months, the supply of temporary candidates in Scotland decreased in September. Covid-19, a shift among some candidates to permanent roles and Brexit were all cited by panellists as reasons for the latest fall. The rate of decline in temp candidate availability slowed from August’s survey record, but was still marked overall.
Scottish recruiters signalled a further steep increase in salaries awarded to permanent new joiners during September, stretching the current sequence of rising pay which began last December. Notably, the rate of inflation accelerated to a fresh survey record.
Sebastian Burnside, chief economist at Royal Bank of Scotland, said skills shortages “are likely to become more pronounced over the coming months”.
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