Increase in permanent jobs in Scotland

The Scottish labour market has seen a sharp improvement in employment levels, with increases in permanent placements, according to a market report on jobs.

June's IHS Markit Report on Jobs for Scotland said demand for temporary and permanent staff remained at historically high'' levels.

On the pay front, the survey said salary pressures remained steep''.

Tom Hadley, director of policy at the Recruitment & Employment Confederation, said: With fewer people currently looking for jobs, employers are having to increase starting salaries to secure the talent they need.

This is creating great opportunities for people with in-demand skills who are prepared to change jobs, but it's also putting unsustainable pressure on many businesses.''

The UK also signalled sharp levels of growth but recorded slower increase rates as a whole than Scotland.

Data indicated IT and computing saw the largest rise in vacancies in June. Engineering and construction was also a top-performing sector.

Scottish recruitment consultancies also reported steep increases in temporary billings and permanent staff placements, with the temporary billings reporting the quickest growth in nearly three years.

The UK recorded sharp rates of growth in placements, however they were slower than those north of the border.

The number of candidates available for vacant permanent positions in Scotland fell in June. However, the rate of decline was slightly weaker than the UK as a whole.

Temporary staff availability also deteriorated sharply in Scotland, albeit to a lesser extent than that seen at the UK level.

Pay pressures remained elevated in June, with data indicating notable increases in both permanent salaries and temporary wages.

In the case of salaries, growth was the fastest for nine months, although the rates of inflation were slower than those seen at the UK level.

Mr Hadley said skills shortages were being hit by Brexit and Scottish employers were concerned about losing skilled European Union staff.

He added: Existing skills shortages are being exacerbated by Brexit. Scotland already has 43,000 EU nationals working in the wholesale and retail trade, hotels and restaurants.

Policies which make it more difficult to recruit and retain these people will put business growth at risk.

Investment in training the domestic workforce is vital to the long-term health of the jobs market but it won't allay employers' fears about losing access to workers from the EU.'