Connecting to LinkedIn...

Blank

DEMAND FOR PERMANENT STAFF IN SCOTLAND FALLS FOR FIRST TIME IN NINE MONTHS

DEMAND FOR PERMANENT STAFF IN SCOTLAND FALLS FOR FIRST TIME IN NINE MONTHS
Permanent placements declined, growth in temporary jobs slowed
Vacancy trends continued to weaken in both sectors
Wages and salaries fell reflecting increased staff availability
Latest data from the Bank of Scotland Report on Jobs has indicated that conditions in the Scottish labour market remained challenging in August. The number of workers placed in permanent job roles fell for the second successive month, whilst growth of temp billings weakened to the lowest level since September 2009. This was due to weaker trends in demand for workers for both long- and short-term jobs. Subsequently, increased candidate availability reduced average remuneration rates in August.
The Bank of Scotland Labour Market Barometer a composite indicator designed to provide a single figure snapshot of labour market conditions signalled deterioration for the third consecutive month. The Barometer posted 47.9 in August, down marginally from 48.1 in July and its lowest reading since October 2009. Similarly, conditions in the UK labour market weakened during August as signalled by the KPMG/REC Report on Jobs. However, Scotland continued to underperform the UK overall by a considerable extent.
Scot UK*
Jul'09 39.4 40.2
Aug 40.2 43.2
Sep 44.1 46.3
Oct 46.2 48.5
Nov 49.6 52.8
Dec 51.6 54.7
Jan'10 52.0 55.1
Feb 52.9 56.4
Mar 54.2 56.4
Apr 54.3 56.8
May 52.3 56.3
June 49.4 55.8
Jul 48.1 56.1
Aug 47.9 54.9

50 no change on previous month.
*KPMG/RECReport on Jobs

Bank of Scotland Labour Market Barometer
Donald MacRae, Chief Economist at Bank of Scotland, commented:
The number of appointments to permanent jobs declined marginally in August, while growth in placements for temporary staff was maintained. However the rate of increase weakened to the slowest since September 2009. The number of people seeking temporary positions rose at the fastest pace in twelve months.
Demand for permanent staff fell for the first time in nine months, yet grew in six out of eight employment categories, with growth in the Hotel & Catering sector reaching a four-year high. Similarly, six out of eight sectors had greater demand for temporary employees.
Labour market conditions in Scotland remained challenging and worse than the UK as the market deteriorated in August. However the rate of decline was only modest.

Regional analysis
Edinburgh-based agencies posted the strongest rise in temporary appointments during August. Aberdeen saw the strongest rise in appointments in the permanent sector.
Permanent starting salaries fell across three of the four monitored regions, with Aberdeen the exception. Temp hourly pay rates rose fastest in Dundee, but Glasgow recorded a marked fall.
Glasgow-based recruiters reported the largest increase in available permanent workers in August. Aberdeen saw the fastest rise in temp availability.
Wages and salaries
Average salaries awarded to successful permanent candidates fell for the third successive month. Furthermore, the latest drop was the sharpest since November 2009.
Hourly remuneration rates paid to temporary staff decreased for the first time since December 2009.

Employment
Latest data indicated a marginal reduction in the number of permanent Scottish workers employed during August.
Growth in the number of work placements for temporary/contract staff was maintained during August. However, the rate of increase weakened marginally from July to the slowest since September 2009.

Vacancies
August data indicated that demand for permanent staff in Scotland decreased for the first time in nine months.
Demand for temporary workers continued to rise in August. However, growth eased to the weakest since February.

Availability
Recruitment consultancies registered a solid rise in the number of candidates seeking permanent job placements. Growth in availability has now been recorded for twenty-nine straight months.
Available candidates seeking temporary or contract job roles rose at the strongest rate for twelve-months in August.

Sectors
In August, six out of eight employment categories reported increased demand for permanent staff, with growth in the Hotel & Catering sector reaching a four-year high.
Mirroring the trend in the permanent job market, six out of eight employment sectors had greater demand for temporary employees. The IT & Computing sector had the highest worker demand for the tenth month running.

Permanent Staff Temporary/Contract Staff
1 Hotel & Catering 1 IT & Computing
2 IT & Computing 2 Hotel & Catering
3 Engineering & Construction 3 Engineering & Construction
4 Executive & Professional 4 Executive & Professional
5 Accounts & Financial 5 Blue Collar
6 Nursing/Medical/Care 6 Secretarial & Clerical
7 Blue Collar 7 Accounts & Financial
8 Secretarial & Clerical 8 Nursing/Medical/Care
(Ranked by strength of demand in Scotland in August 2010)

The Bank of Scotland Labour Market Barometer
A key tool in the Monthly Labour Market Report is the Bank of Scotland Labour Market Barometer. The Barometer is a composite indicator devised from four key measures: demand for staff employment availability for work (inverted) and pay in the permanent and temporary markets.
The Bank of Scotland Labour Market Barometer fell from 48.1 to 47.9 in August, to signal a deterioration in jobs market conditions for the third successive month. Nevertheless, the pace of contraction signalled by the series was only modest.
Weaker demand growth and lower job placements contributed to the fall in the Barometer in August. In addition, the latest data provided evidence of labour market slack as candidate availability continued to increase, placing downward pressure on staff pay.

Perm

Temp

Overall

Perm

Temp

Overall

Perm

Temp

Overall

Perm

Temp

Overall

Place

Billing

Appoint

Demand

Demand

Demand

Avail

Avail

Avail

Salary

Pay

Pay

09 Aug

47.5

49.8

47.6

44.8

47.3

44.9

76.3

77.2

76.3

44.8

41.8

44.7

Sep

49.1

52.7

49.3

45.9

47.5

46.0

62.7

66.3

62.9

44.0

44.4

44.0

Oct

52.5

58.3

52.8

48.5

49.9

48.6

61.2

61.5

61.2

44.7

46.1

44.8

Nov

58.4

58.2

58.4

49.8

50.9

49.9

56.3

58.0

56.4

46.6

46.5

46.6

Dec

62.0

60.4

61.9

51.9

52.8

52.0

56.0

55.5

55.9

48.4

49.5

48.5

10 Jan

61.5

55.2

61.1

52.2

50.5

52.1

55.1

54.2

55.0

49.6

50.8

49.7

Feb

60.7

56.7

60.5

54.4

52.3

54.3

54.6

56.4

54.7

51.4

52.7

51.5

Mar

60.3

63.6

60.5

58.0

55.3

57.9

52.3

55.0

52.5

50.7

55.0

51.0

Apr

58.1

63.3

58.4

58.7

57.9

58.6

53.7

54.7

53.8

53.9

55.2

54.0

May

54.7

61.6

55.1

59.1

58.6

59.1

55.7

59.8

56.0

50.8

51.2

50.8

Jun

52.9

55.3

53.1

56.0

57.7

56.1

60.3

62.9

60.4

48.8

52.6

49.0

Jul

48.3

53.0

48.6

53.2

57.1

53.5

58.2

63.4

58.5

48.5

51.7

48.7

Aug

49.2

52.7

49.4

49.9

54.5

50.2

54.2

67.1

54.9

47.0

46.4

47.0

Tags:

Articles similar to

Articles similar to