Permanent job placements on the rise

The number of permanent job placements in Scotland has risen for the first time in five months

Published 8th Mar 2017

Permanent job placements have risen for the first time in five months, according to a new report.

Recruitment consultancies in Scotland recorded their first increase in permanent posts during February, although experts say the pace was only modest and weaker than the UK-wide trend.

Temporary and contract workers, meanwhile, rose at the quickest pace for 14 months and salaries strengthened to a five-month high.

The latest Markit Report on Jobs for Scotland showed the first rise in people placed in permanent jobs by recruitment consultancies since September last year.

One factor leading firms to improve their pay packets was a lack of available candidates for vacant positions, the report said.

It added that declines in staff availability were evident for both permanent and temporary job roles, and the latest fall in short-term candidates was the fastest seen in a year.

Recruitment & Employment Confederation chief executive Kevin Green said: "There are tentative signs that the labour market in Scotland is improving, with the first increase in permanent placement recorded in five months.

"This is good news but a further decline in candidate availability is an ongoing cause for concern.

"The chancellor is expected to announce a boost for vocational training in the budget and this is very welcome. However, it won't solve the immediate need for people to fill jobs.''

Starting salaries for staff placed in permanent jobs rose further in February, which continued a trend for the past four years. The increase was slightly weaker than the UK average.

Hourly rates of pay for temporary workers, meanwhile, also rose at a faster pace than at the start of the year.

A rise in demand for permanent staff in Scotland was also reported last month with growth accelerating to a two-year high. The latest increase, however, remained weaker than the UK figure.

Demand for temporary workers also increased last month at a rate that was the strongest for 26 months. It continued the trend of rising demand which has been observed in every month since October 2009.

Employment data showed staff demand was strongest for permanent and temporary roles in nursing, medical and care roles, but the report showed recruitment shortages were still evident.