Scots job scene slips slightly on June but is still in good health

Bank of Scotland's latest labour market report, published today, said demand for staff remained "firm" during July with salaries continuing to rise amid a tight market.

However, the survey's main labour market barometer was down on June's all-time high of 64.4, recording a figure of 62.6 last month. Any figure above 50 denotes expansion.

The index was also slightly below the equivalent barometer for the wider UK economy, which registered 62.7, against 62.5 in June.

Tim Crawford, group economist at Bank of Scotland, said: "The Scottish labour market is buoyant with job placements rising and demand for staff firm. Pay rates remain under pressure as firms compete for the best staff. "The strongest demand is for healthcare, along with engineering and construction."

The same sectors were found to be the most buoyant in June's report.

A regional breakdown showed Glasgow posted the sharpest increases in permanent placements and temporary billings last month. Scotland's biggest city also registered the biggest fall in permanent staff availability. Temp shortages were most keenly felt in Dundee. Meanwhile, Aberdeen recorded the strongest increase in salaries among permanent workers.

Underscoring the tight market conditions, about a third of those polled reported a decline in the availability of permanent staff.

The monthly report is based on the findings of more than 100 recruitment and employment consultants and is conducted by NTC for Bank of Scotland.