Scottish skill shortages are driving up wages at the fastest rate in four years, according to a report published by the Bank of Scotland, with the sharpest rises in Aberdeen.
According to the latest Scottish Labour Market Report the rise in wages in May was caused by firm demand for staff and ongoing skill shortages.
Permanent staff placements rose at the strongest pace for seventeen months, but demand accelerated to a four-month high, and temp billings grew at the fastest pace on record. Healthcare staff were the most sought-after for permanent positions, and Engineering and Construction was the most in-demand temp category.
But candidate availability was dropping, with 37% of agencies surveyed for the report claiming a decline in permanent candidates in May, and 26% signalling a fall in temporary and contract candidates.
Each month the Bank of Scotland updates its Labour Market Barometer, a scale used to judge economic strength, judged on demand for staff, employment, availability for work and pay. In May the barometer posted a ten-month high of 62.2, up from 61.3 in April, a level which indicates a strong jobs market in Scotland and higher than the equivalent barometer for the wider UK economy.
Tim Crawford, at Bank of Scotland Group Economist Tim Crawford said: “The Scottish labour market continues to perform well with a rise in both permanent and temporary employment in May. However, staff availability is quite tight and many employers are offering higher salaries to attract new staff.” |
