Mixed jobs news, but BoS says Scotland is showing ‘resilience’

By SCOTT REID
Published on 17/09/2012 00:00

Scotland’s economy is displaying “resilience” in the face of the global slowdown despite fresh downbeat news on the employment front.

Today’s Report on Jobs from Bank of Scotland points to a further reduction in permanent placements during August, while demand from businesses for both permanent and temporary workers eased.

However, recruitment firms reported higher average salaries last month against the reductions experienced in June and July. August also saw a sharp rise in the number of people who found temporary employment.

The report’s labour market barometer, an indicator designed to provide a single-figure snapshot of conditions, where 50 equates to no change, registered at 52.4 last month. Though up from 50.2 in July and hitting a three-month high, it remains below the series average of 53.4.

The bank’s chief economist, Donald MacRae, claimed the findings still signalled a “welcome improvement” in the labour market.

“The Scottish economy is showing resilience in the face of the global slowdown,” he noted.

The report is seen as one of the most authoritative snapshots of Scotland’s jobs market and is based on the responses from more than 100 recruitment and employment agencies. It follows last week’s disclosure that unemployment north of the Border had risen for the first time in six months.

According to the latest BoS survey, six out of eight employment sectors saw an increase in permanent job vacancies in August, with the greatest monthly rise in the IT and computing sector.

• UK households are likely to see an increase in real disposable income next year for the first time since the credit crunch struck, according to research today. The Centre for Economics & Business Research is also forecasting a return to economic growth.