Bank of Scotland

Sharper reduction in permanent placements

17 September 2012

    Divergence between permanent and temporary appointments
    Candidate availability declines at sharpest rate for almost five years
    Aberdeen posts fastest reduction in permanent placements, while Dundee sees strongest rise in temp billings

The latest Bank of Scotland Report on Jobs signalled a further reduction in permanent placements in August. Temp staff billings meanwhile increased for the second month running. That said, demand for permanent and temporary staff slowed further, with the rates of vacancy growth at seven and six-month lows respectively. Meanwhile, permanent candidate availability fell sharply from July, and average salaries increased for the first time since May.

The Bank of Scotland Labour Market Barometer – a composite indicator designed to provide a single figure snapshot of labour market conditions – signalled only a modest improvement in Scottish job market conditions. Although the Barometer rose from 50.2 to a three-month high of 52.4, it nonetheless remained below the long-run series average of 53.4.

 Bank of Scotland Labour Market Barometer

 Donald MacRae, Chief Economist at Bank of Scotland

"The Scottish labour market showed a welcome improvement in August with increases in temporary jobs and a rise in vacancies for both permanent and temporary jobs. However, appointments to permanent jobs fell for the second successive month illustrating the challenge of maintaining the overall trend of increasing employment. The Scottish economy is showing resilience in the face of the global slowdown."

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