SCOTTISH labour market conditions outperformed the UK in December, a new report reveals.
The latest Royal Bank of Scotland Report Jobs Market Report found permanent staff appointments increased at a marked rate at the end of 2018 while temporary billings also rose sharply.
In both cases, expansions were faster than noted on average for the UK as a whole. Meanwhile, permanent and temporary job openings increased again in December.
However, falling labour supply led to further pressure on pay.
Scottish recruitment agencies pointed to a further increase in permanent staff appointments during December. The rate of growth accelerated and was among the sharpest recorded since data collection began over two decades ago. The rise outpaced that recorded for the UK overall, where growth slowed to a 20-month low.
Temporary staff billings in Scotland also rose, continuing the upward trend which started one year ago.
The pick-up was sharp and as with permanent placements, was stronger than the UK average.
Job vacancies rose further in the latest survey period.
Although permanent staff demand increased at a weaker pace than seen in November, the expansion was marked overall. Growth was also stronger than seen at the national level, continuing a trend which has been apparent for nearly one year.
Similarly, recruiters registered higher vacancies for temporary staff in Scotland during December.
Across the monitored sectors, demand was strongest for short-term nursing, medical and care workers.
Despite marked growth in staff demand, survey data suggested that the availability of candidates to fill vacant roles continued to decline in Scotland. The supply of permanent labour deteriorated substantially and at the quickest rate in one year during December.
Shortages of temporary staff were also apparent during the latest survey period. Although the decline in temp worker supply was weaker than seen in November, it was sharp overall and more severe than seen at the UK level.
The supply and demand imbalance for staff across the Scottish labour market contributed to another month of increasing pay. Salaries award to permanent starters rose sharply in December, despite the rate of inflation moderating for a second month running.
Short-term staff also received higher wage rates during the latest survey period. The up-tick in pay was strong and unchanged from that recorded in November.
Sebastian Burnside, chief economist at RBS, said: “Scotland’s labour market ended the year on a very strong footing according to latest survey data.
“Permanent and temporary staff appointments are continuing to rise sharply, while demand for both types of employees grew at marked rates.
“However, challenges to the jobs market are presented via the supply-side.
“We continue to see Scottish recruiters reporting severe deteriorations in candidate availability, which is ultimately pushing up rates of pay for both short-term and permanent roles.
“Whether continued declines
in labour supply begin to
restrict growth in placements
is yet to be seen.”
Why are you making commenting on The National only available to subscribers?
We know there are thousands of National readers who want to debate, argue and go back and forth in the comments section of our stories. We’ve got the most informed readers in Scotland, asking each other the big questions about the future of our country.
Unfortunately, though, these important debates are being spoiled by a vocal minority of trolls who aren’t really interested in the issues, try to derail the conversations, register under fake names, and post vile abuse.
So that’s why we’ve decided to make the ability to comment only available to our paying subscribers. That way, all the trolls who post abuse on our website will have to pay if they want to join the debate – and risk a permanent ban from the account that they subscribe with.
The conversation will go back to what it should be about – people who care passionately about the issues, but disagree constructively on what we should do about them. Let’s get that debate started!
Callum Baird, Editor of The National
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here