Scots starting salaries rising faster than rest of UK

Starting salaries across Scotland rose at a much faster pace in December than that recorded at the UK level, according to the latest Royal Bank of Scotland Report on Jobs survey.

The availability of candidates to fill permanent positions across Scotland worsened for the 23rd consecutive month during December.

The report said: “Acute skill and candidate shortages limited the supply of workers, according to recruiters.

“Furthermore, the cost of living crisis, recession fears and greater market uncertainty also restrained labour movement.

“The pace of reduction in permanent candidate availability across Scotland outstripped the UK-wide average.

“As has been the case in each of the last 22 months, Scottish recruiters reported a fall in temp candidate numbers during December.

“The rate of reduction gathered pace for the third month running and was the sharpest since June.

“The latest reduction in temp staff availability was attributed to a slowdown in market conditions, Brexit and a general scarcity of labour.”

The December data revealed another sharp rise in starting salaries awarded to permanent job market joiners during December.

The survey said Scottish recruiters reported a decline in permanent placements during December.

“The rate of contraction eased considerably over the month, however, with the respective index climbing from 40.6 in November to 46.8 in December,” said the report.

“Nevertheless, placements fell for the third month running overall, as recession fears and market uncertainty dampened recruitment activity.

“Temp billings likewise fell for the third successive month. Growth of demand for labour continued to soften during the final month of the year.

“Permanent and temp vacancies expanded at the weakest rates in 22 and 27 months, respectively.

“Nonetheless, in efforts to attract and secure candidates amid ongoing reports of labour shortages, firms across Scotland continued to raise starting salaries and temp wages sharply.”