Scottish job growth loses further momentum in November - RBS

Furthermore, the availability of permanent staff declined at the quickest rate since February. Meanwhile, temporary staff billings increased at a sharper pace, despite a stronger deterioration in short-term staff supply. On the pay front, starting salaries and temp wage rates increased further.

Permanent appointments continued to increase in Scotland during November, extending a trend which first began almost two years ago.

Though still sharp, the rate of expansion was the softest since April and stronger than the UK average. Recruitment agencies in Scotland also recorded higher billings received from the employment of temporary staff in November.

The rate of growth was sharper than in the previous month, contrasting with the UK trend where the overall increase softened.

Although survey data pointed to a broad-based slowing of job vacancies growth in Scotland, increases in permanent and temporary staff demand remained sharp overall and faster than those at the national level.

Temporary and permanent job openings rose at the slowest rates in six and nine months respectively.

Permanent staff demand in Scotland has now risen for just over eight years, while the expansionary trend for temp workers started in November 2009.

Labour supply continued to deteriorate, however, with candidate availability falling for both types of staff in November. The fall in permanent staff supply was substantial and the most marked in nine months.

This contrasted with the national trend, where permanent candidate availability deteriorated to a weaker extent. Meanwhile, temporary labour supply contracted at a pace which was close to September’s 39-month peak.  

Salaries awarded to permanent starters in Scotland grew sharply in November, despite inflation easing from October’s near four-year peak. That said, the increase was softer than seen for the UK overall.

Though marked, temp wage rates rose at the weakest pace since August during the latest survey period. Meanwhile at the national level, short-term pay rose at the fastest rate since July 2007.

Sebastian Burnside, chief economist at Royal Bank of Scotland, said: “November jobs data for Scotland remained positive, with permanent and short-term employment growing. Furthermore, pay pressures increased sharply and vacancies for both types of staff continued to increase.
 
“That said, momentum was lost in November, as rates of growth in staff demand eased, especially for IT contractors and other professionals. Supply of workers diminished further, coinciding with the weakest rise in permanent placements since April.”