A new report has found “tentative signs” Scotland’s labour market is improving, following the first rise in permanent job placements in five months.
Although the number of people placed in permanent posts by recruitment agencies increased in February, the rise was “modest and weaker than the UK-wide trend,” according to the research.
The latest Markit Report on jobs for Scotland also showed the sharpest rise in temporary and contract positions since December 2015 last month.
Salary levels for workers starting in permanent jobs reached a five month high, while rates of pay for temporary posts also rose at faster pace than at the start of the year.
But a “steep fall” in availability of candidates highlighted in the report was said to be a “cause for concern,” by the chief executive of industry body the Recruitment and Employment Confederation (REC), Kevin Green.
Mr Green said: “There are tentative signs that the labour market in Scotland is improving, with the first increase in permanent placement recorded in five months. This is good news, but a further decline in candidate availability is an ongoing cause for concern.
“The Chancellor is expected to announce a boost for vocational training in today’s budget and this is very welcome. However, it won’t solve the immediate need for people to fill jobs.”
A report by the Institute of Chartered Accountants in England and Wales (ICAEW) has shown business confidence in Scotland has continued to grow slowly for the third consecutive quarter, but remains in “negative territory.”
ICAEW Scotland president, Andrew Hewett, said: “There is no doubt some uncertainty remains amongst business professionals in Scotland, but the fact that there is a degree of optimism over the outlook for the coming twelve months, suggests that there is a belief that things have the potential to improve.”
