Salary inflation hits survey-record high in February
17 March 2014
Latest data from the Bank of Scotland Report on Jobs signalled a record increase in permanent starting salaries as a surge in demand for staff continued. A further contraction in candidate numbers was another factor behind the improvement in remuneration. The temporary jobs market also remained healthy, with billings, vacancies and hourly pay rates all rising on the month, according to February’s survey of recruitment consultancies.
At 63.9 in February, the Bank of Scotland Labour Market Barometer – a composite indicator designed to provide a single figure snapshot of labour market conditions – was the second-highest in the series history; just below June 2007’s survey record. This signalled a marked improvement in overall Scottish labour market conditions. The Barometer was also above the UK equivalent, as has been the case throughout the past year.
Donald MacRae, Chief Economist at Bank of Scotland, commented: “February’s Barometer reached 63.9 – the second highest in eleven years of the survey amid a continued surge in demand for staff. The number of people appointed to both permanent and temporary jobs rose sharply accompanied by a record increase in permanent job starting salaries. Business confidence is clearly increasing among Scottish firms. These results show the recovery in the Scottish economy continuing into 2014 and becoming more established with every month.”