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Scotland – Temp billings decline but the market remains “strong”

16 July 2012

Temporary staff billings in Scotland dropped in June while the number of jobseekers finding permanent placements rose at the weakest pace since January, the latest labour market research by the Bank of Scotland found.

Staffing firms reported that temporary billings declined the greatest in Aberdeen while Glasgow saw the strongest increase in permanent placements in the month. Candidate availability for both temporary and permanents jobs showed the strongest improvement in Aberdeen, where hourly pay rates for temporary workers fell at the fastest rate. Overall, temp salaries remained broadly unchanged.

Although the report found that vacancy growth for the temporary staffing market remained strong, this eased to a three-month low in June. Temporary posts increased in all employment sectors the report covers, led by IT & Computing and followed by Engineering & Construction. The weakest demand for temporary jobs was reported in the Nursing/Medical/Care sector.

But recruitment agencies found that demand for permanent positions declined in three sectors, including Executive & Professional, Nursing/Medical/Care and Blue Collar. On the other hand, permanent staff in IT & Computing as well as Hotel & Catering were most sought after.

“The Report on Jobs for June showed vacancies continuing to rise and an increase in the numbers of people appointed to permanent jobs. However, the rate of growth slowed showing a weakening in labour market conditions. The Scottish economy is struggling to maintain growth momentum in the face of the global slowdown,” Donald MacRae, Chief Economist at Bank of Scotland, warned. 

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