Labour Market buoyant as skills gap eases

Strong demand for staff and a greater prevalence of skilled workers have underpinned Scotlandís jobs market, according to the latest Bank of Scotland Labour Market Report. Recruitment consultancies reported higher employee appointments in August, as they looked to fill rising numbers of job vacancies at Scottish firms. The rate of expansion was above the UK average for the second consecutive month.

Meanwhile fewer instances of skills shortages were reported and the availability of suitably qualified staff declined at the slowest rate since April 2004. Temporary staff shortages were the least marked in over two years. This was reflected in lower wage inflation as growth cooled to its lowest level in seven months, although remaining above the average for the UK as a whole.

IT & Computing and Engineering & Construction employees were the most sought-after types of permanent worker, while Engineering & Construction staff recorded the highest demand amongst temp employees.

The reportís unique íBarometerí signalled an improvement in Scottish job market conditions for the twenty-fifth consecutive month in August. The rate of improvement remained above the UK average for the fourth month running, although the Barometer fell from Julyís 58.2, to 57.1, its lowest level in three months. Nevertheless, Augustís reading was still indicative of a robust rate of labour market improvement.

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