Permanent job take-up grows for six month in Scottish employment market

More people have been placed in permanent jobs for the sixth consecutive month in Scotland.

The Bank of Scotland Report on Jobs revealed that 36% of recruitment consultants had noted an increase in permanent positions during June, while 28% reported a decline.

The IT and computing sector had the highest demand for permanent and temporary staff during the month, followed by hotel and catering and secretarial and clerical.

However, although this is the sixth month in a row in which more permanent jobs have been taken up, it marks the smallest rise since the start of the year.

Meanwhile, salaries paid out to permanent staff on average fell during June, which brought a four-month period of rises to an end.

The Bank of Scotland labour market barometer, where a score of 50 means "unchanged", hit 52.3 during June.

But although this shows improvements in the jobs market, the score is down from 54.8 and represents a four-month low.

Temporary billings also fell for the first time in 2012 during the month, while hourly pay rates for this type of work remained broadly unchanged.

Donald MacRae, chief economist at the Bank of Scotland, explained that the figures might still be improving, but the latest results show that the Scottish employment market could find it hard to continue growing in the long term.

"The Report on Jobs for June showed vacancies continuing to rise and an increase in the numbers of people appointed to permanent jobs," he said.

"However the rate of growth slowed showing a weakening in labour market conditions.

"The Scottish economy is struggling to maintain growth momentum in the face of the global slowdown."

A Scottish Government spokeswoman said: "This report shows improvement in Scottish labour market conditions for the 20th consecutive month in contrast to the position for the UK, where the survey indicated a deterioration in labour market conditions.

"This is further evidence that the UK Government has to admit that its austerity programme is failing and that it's time to take action to boost growth.

"In Scotland, we announced last month that we are bringing forward a 105 million package of economic stimulus to maximise opportunities and we continue to urge the UK Government to follow our lead and invest now to promote economic growth in future."

Copyright Press Association 2012