Hiring activity surges in Scottish labour market boost – report

Hiring activity has surged midway through the second quarter in a boost to the Scottish labour market, according to new figures.

The latest Royal Bank of Scotland Report on Jobs found temporary billings had risen at their steepest rate since June 2007 while permanent salaries rose at the fastest pace since December 2014.

It was also the ninth monthly upturn in a row which has been attributed to increased demand for staff with pandemic-related restrictions being eased in most areas.

Permanent staff appointments in Scotland rose further during the month of May with demand also helped by the easing of lockdown restrictions.

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The report also suggests salaries awarded to permanent new joiners in Scotland had risen further too with stronger competition for candidates.

Sebastian Burnside, RBS chief economist, said: “May data pointed to a further steep increase in hiring activity across Scotland as the easing of lockdown measures and subsequent reopening of sectors spurred on the economy and boosted demand for staff.

“A record rise in permanent placements and the steepest increase in temp billings since 2007 shows that the labour market is recovering well from the Covid-19 induced downturn last year.

“Further positive signs came from staff demand indices, which showed the strongest upturns in temp and permanent vacancies on record.

“Staff supply fell too, however, as lingering pandemic-related uncertainty left many candidates wary of switching roles.

“Nonetheless, a stellar performance in May puts the labour market in good stead moving forward, with the further easing of restrictions likely to provide another boost.”

Scotland’s Employment Minister Richard Lochhead said: “The latest RBS Markit jobs report is a further sign of growing momentum in Scotland’s economy and labour market following the unprecedented economic impact of the pandemic.”

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