Salary inflation at record high as permanent candidate numbers plummet
21 July 2014
June’s Bank of Scotland Report on Jobs showed a further tightening of conditions in Scotland’s labour market, with salary inflation pushed to the highest in the survey’s history on the back of stronger demand for staff and a record drop in permanent candidate availability. Increased vacancies also helped drive an upturn in staff placements, with appointments of permanent employees and temp billings both rising at faster rates.
Highlighting growing pressure in Scotland’s labour market, the Bank of Scotland Labour Market Barometer – a composite indicator designed to provide a single figure snapshot of labour market conditions – rebounded to a survey-record high of 65.1 in June, up from 61.8 in May. The increase in the barometer was the first since February, and mirrored a similar upturn at the UK level.
Donald MacRae, Chief Economist at Bank of Scotland, commented:“June’s Barometer reached a record high in the eleven and a half years of the survey. The number of people appointed to jobs increased while vacancies grew at a robust rate. The number of candidates available for both permanent and temporary jobs fell accompanied by a record rise in starting salaries. The recovery in the Scottish economy looks set to continue.”