Demand for staff grows as labour market tightens

Demand for permanent and temporary staff grew last month as Scotland’s labour market continued to tighten, according to a jobs survey.

IT and computing saw the highest level of permanent vacancies in January.

The largest number of unfilled temporary positions was in the medical, nursing and care professions.

The Royal Bank of Scotland Report on Jobs said the rate of deterioration in permanent staff supply was the sharpest since September 2014.

The report is compiled from responses to a survey sent to around 100 recruitment and employment consultancies.

Permanent staff appointments in Scotland rose in January, while temporary billings increased sharply.

Sebastian Burnside, chief economist at Royal Bank of Scotland, said: “Continued expansion in permanent job placements and temporary staff billings across Scotland was seen in January, indicating further signs of a tightening labour market.

“The rise in permanent staff appointments was the slowest in ten months, but a notable divergence from the wider-UK trend, where permanent placements declined for the first time since July 2016.

“Overall, survey data portrayed a favourable labour market for workers in Scotland, with pay pressures rising as a result of strong imbalances in staff supply and demand.

“Firms looking to hire face difficulties amid low candidate availability and strong competition for staff.”