Jobs growth in Scotland above UK average

 

© The Herald Originally published: 16/6/2008

Jobs growth in Scotland remains steady, according to figures published today by Bank of Scotland.

The company's labour market barometer, which takes account of surveys looking at demand for permanent and temporary staff and wage levels, slipped marginally to 53.3 in May from 53.5 in April, signalling a slower rate of improvement in overall Scottish job market conditions. But it was still above the equivalent index for the UK as a whole at 49.6..

Martin Ellis, chief economist at Bank of Scotland, said: "Jobs growth in Scotland remains relatively firm despite a moderating in market conditions since last summer..

"Demand for staff and permanent staff placement growth is steady and is stronger than in other parts of the UK."

Most in demand for both permanent and temporary contracts were staff in the nursing, medical and caring professions. Blue collar workers were the second most sought-after for temporary work.

One aspect of the survey likely to be watched closely by observers such as the Bank of England, which is desperate to stop inflation in fuel and energy prices feeding through to wage demands, is rising pay levels north of the border.

Inflation in permanent staff salaries accelerated to an eight-month high during May, the bank reported. Hourly rates of pay for temporary and contract employees rose at the fastest pace in nine months despite a slight rise in unemployment which might normally be expected to constrain wage growth. Pay inflation was fastest in Aberdeen.