Scottish salary growth hits two-year low

This was despite the research also showing a demand for staff strengthening while the downturn in candidate availability becomes more acute.

The data also showed a modest rise in permanent placements contrasted with an easing of growth in temporary positions.

The number of people placed in work in Scotland rose during September, although the rate of growth was well below the average seen over the past two-and-a-half years of increasing placements, according to the BoS report.

This was despite demand for staff growing strongly in September, particularly with regards to permanent workers, but survey data showed a continued drop in candidate availability.

On the pay front, both permanent salaries and hourly wages for temp staff rose at slower rates.

The report found the growth in permanent starting salaries slowed in Scotland for the fourth time in the last five months in September, falling to its weakest since August 2013.

Dundee saw the sharpest rises in Scotland for staff in permanent and temporary posts, followed by Glasgow.

At 56.6, up from August’s 56.2, the headline Bank of Scotland Labour Market Barometer – a composite indicator designed to provide a single-figure snapshot of labour market conditions – showed an improvement in the health of Scotland’s labour market in September.

However, despite ticking up, the barometer’s latest reading was still the second-lowest since May 2013 and below the equivalent index for the UK as a whole.

Donald MacRae, Chief Economist at Bank of Scotland, said: “The number of people appointed to both permanent and temporary jobsrose in September although at a reduced rate compared to last year. Demand for staff grew strongly but increases in starting salaries moderated. These results suggest that business confidence in the Scottish economy is holding up despite the slowdown in growth evident earlier in the year.”