Scotland business

Job market sees 'marked rise' in pay, survey finds

Man typing on keyboard Image copyright Thinkstock
Image caption The survey found IT and computing led the growth in demand for permanent staff

Strong demand for staff and a lack of available candidates helped drive up wages for new recruits in Scotland last month, a job market survey has found.

The latest Bank of Scotland Report on Jobs found a marked rise in permanent starting salaries and temp staff hourly rates.

The number of people placed in permanent and temporary jobs also picked up strongly in May.

However, the increase was at a slower rate than that seen at the UK level.

According to the survey of recruitment agencies, the number of job openings in Scotland also continued to grow last month as demand for both permanent and temporary staff improved.

At a sector level, IT and computing led growth in demand for permanent staff, ahead of accounts and financial and nursing/medical/care.

The same three sectors also saw the sharpest increases in temporary job vacancies.

Jobs barometer

The bank's labour market barometer - which measures areas such as levels of staff demand, employment and wages in permanent and temporary jobs - dipped to 61.8, from 62.5 in April.

Any figure above 50 represents an improvement in market conditions.

The bank said the latest reading was "consistent with a substantial improvement in labour market conditions" north of the border.

However, the barometer was below its UK equivalent for the second month running.

Bank of Scotland chief economist Donald MacRae said: "May's barometer showed the Scottish labour market continuing to improve.

"Not only did the number of people appointed to both permanent and temporary jobs increase over the month but vacancies grew at a robust rate.

"The number of candidates available for permanent jobs fell, resulting in a noticeable increase in permanent salaries.

"This month's barometer provides further evidence that the recovery in the Scottish economy will continue throughout 2014."

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