Scottish labour market continues to cool

Novemberís Bank of Scotland Labour Market Report revealed that conditions in the Scottish jobs market eased further in November, with employment and average pay growth weakening, while candidate availability declined at its slowest rate for a year. Demand for permanent staff recovered slightly however, from October's thirty-three month low.

The report's labour market barometer fell for the fifth successive month to 56.4 from 58.9 in October, its lowest level for thirty-four months. The index was below the equivalent barometer for the wider UK economy for the second consecutive month.

At a sector level, Engineering & Construction remained the most sought-after category for permanent staff during the latest survey period, while Nursing/Medical/Care was the most in-demand category for temp workers.

Martin Ellis, Chief Economist at Bank of Scotland, commented: ìThe recent easing in Scottish labour market conditions from June's peak reflects in part the impact of the interest rate rises from earlier in the year. Growth in job vacancies, employment and pay all appear to have lost some momentum since the summer. The labour market remains relatively tight with demand for permanent staff still firm in a number of sectors including engineering & construction, although the rate of deterioration in overall candidate availability has slowed somewhat.

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