Scottish labour market recovery pace 'slowing'

  • Published
Jobcentre computerImage source, PA

The recovery in Scotland's labour market has continued into the second half of 2015, according to the latest Bank of Scotland report on jobs.

But, it said there were signs of the upturn slowing.

July saw a rise in demand for staff and an increase in average starting salaries, the report said.

However, in each case the rates of improvement were well below the highs reached one year ago.

The Bank of Scotland Labour Market Barometer for July was measured at 58.2.

That is well above the 50 "no-change" level, pointing to a further improvement in overall labour market conditions north of the border.

Inflation 'solid'

But, the latest reading was the lowest since May 2013, and well below last July's survey-record high of 67.3.

The equivalent UK index recorded a six-month low of 61.1 at the start of the third quarter.

Donald MacRae, chief Economist at Bank of Scotland, said: "Scotland's labour market continued to improve in July.

"The number of people appointed to both permanent and temporary jobs rose in the month but the number of vacancies for permanent jobs increased at the slowest pace in just over two years.

"Salary inflation remained solid although slowing to a five-month low.

"These results show an economy demonstrating both confidence and growth in the second half of 2015."

The report also said:

  • Dundee recorded the fastest rise in permanent placements ahead of Glasgow, while Aberdeen was the only region to see a decline.

  • Growth in temporary vacancies was also led by Dundee, with Aberdeen again seeing the only decrease.

  • The sharpest deteriorations in permanent and temporary candidate availability were recorded in Edinburgh and Glasgow respectively.

  • Glasgow led permanent salary inflation in July

  • The most marked rise in hourly pay rates for temporary staff was seen in Dundee.