Bank of Scotland

Permanent placements rise at faster rate, but pay growth eases

16 March 2015

Scotland’s labour market continued to show signs of improvement during February, with permanent placements up sharply amid strong demand for staff. That said, the latest Bank of Scotland Report on Jobs also showed an easing of salary inflation and relative weakness in the temporary jobs space as billings inched up only slightly after falling in January. 

At 59.8 in February, well above the critical 50.0 no-change mark, the Bank of Scotland Labour Market Barometer pointed a further strengthening of labour market conditions in Scotland. That said, the latest reading was the lowest recorded since August 2013 and below the equivalent index for the UK as a whole for the second straight month.    

Donald MacRae, Chief Economist at Bank of Scotland, commented: “February’s Barometer at 59.8 was virtually unchanged from January’s 60.0 showing the labour market continuing to improve but at a slightly lower rate than last year.  The number of people appointed to both permanent and temporary jobs rose as did the number of vacancies. Starting salaries increased for all types of jobs although the rate of increase eased.  These results show businesses with enough confidence to invest for the future and suggest the Scottish economy continues to grow in early 2015.”

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