Salaries soar as demand for Scots staff beats UK

The latest IHS Markit Report on Jobs data for Scotland indicated a further improvement in labour market conditions — with the number of people placed in permanent job roles increasing at the fastest pace since February 2015.

Meanwhile, growth of demand for permanent and temporary staff remained sharp and quicker than that seen across the UK as a whole.

At the same time, the availability of permanent staff fell sharply, while the rate of deterioration in temporary staff supply weakened.

“Permanent placements increased sharply in Scotland and at the fastest rate in 32 months,” said the report.

“In contrast, growth in permanent staff placements across the UK as a whole softened to a six-month low and was weaker than that seen in North of the border …


“Another month of substantial growth of demand for both permanent and temporary staff was registered by Scottish recruitment consultancies in October.

“Vacancies for permanent staff rose at a quicker pace, while those for temp positions expanded at a weaker rate.

“Nonetheless, demand for both permanent and temporary staff outpaced that seen for the UK as a whole.”

The supply of candidates available to fill permanent positions in Scotland fell sharply in October, maintaining a trend that has been observed since March 2012.

Strong demand for staff and lower candidate availability contributed to a further rise in starting salaries.

The rate of salary inflation was sharp and slightly above that seen for the UK overall.

Recruitment & Employment Confederation CEO Kevin Green said: “It’s good news for jobseekers in Scotland as salaries for those starting new jobs are still on the rise.

“At the same time, recruiters have again been successful in helping more people find permanent roles.

“This also means that Scotland is doing better than the rest of the UK, as the growth of permanent placements across the country is slowing.

“However, this positive trend should not distract from the fact that the pool of available candidates for permanent and temporary jobs is shrinking.

“This is not just a Scottish problem – it applies to other parts of the UK, where the situation is even worse.

“The highest demand for people working in permanent and temporary roles is in the IT & computing sector.

“But recruiters are also very keen on placing people in permanent roles within the nursing, medical and care industry.

“We need to ensure that workers from the EU, like nurses and midwives, still feel welcomed here and for this we urgently need clarity around future immigration systems.”