Starting salaries for jobs at their lowest rate since 2003

The Royal Bank of Scotland reported that salaries for permanent staff was at its lowest in almost two decades.

Starting salaries dropped at their fastest rate on record in June, according to a new report.

The Royal Bank of Scotland Report on Jobs found salaries for permanent staff were at their lowest rate since the survey began in 2003.

The salary drop comes as staff appointed to permanent and temporary jobs continued to fall, with respondents postponing hiring decisions amid the coronavirus pandemic.

The Royal Bank of Scotland reported that salaries for permanent staff was at its lowest in almost two decades.

Advertisement

Hide Ad

Sebastian Burnside, Royal Bank of Scotland chief economist, said the labour market in Scotland remains "extremely challenging" with firms' responses to the end of the furlough scheme in October causing the most uncertainty.

The report found permanent appointments fell for the fifth month in a row.

Read More

Read More
Donald Trump moves to withdraw United States from World Health Organisation

The contraction eased from May but remained rapid and quicker than the pre-coronavirus record.

Advertisement

Hide Ad

People securing temporary jobs dropped for the seventh consecutive month but the decline was the slowest rate since February.

The survey of around 100 recruitment and employment agencies recorded a rise in candidates and fall in demand for staff.

Permanent candidates increased for the first time in more than eight years as respondents reported redundancies due to coronavirus.

The rise was the fastest since August 2009.

Advertisement

Hide Ad

Temporary candidate availability also increased and was linked to employee layoffs and contract terminations.

Both temporary and permanent staff vacancies fell and remained below their pre-coronavirus records.

Mr Burnside said: "Labour market conditions in Scotland remained weak during June, with the latest Report on Jobs data highlighting further marked reductions in both permanent placements and temporary billings.

"That said, the rates of decline did soften slightly as parts of the economy look to reopen as a result of easing lockdown restrictions.

Advertisement

Hide Ad

"Meanwhile, vacancies continued to decline substantially, with the falls in both permanent and temporary vacancies surpassing their respective pre-coronavirus records despite softening from May.

"As demand for candidates dropped again, starting pay came under further pressure, with starting salaries declining at the sharpest rate in over 17 years of data collection.

"Overall, the short-term outlook for the Scottish labour market remains extremely challenging with the biggest uncertainty being firms' responses to the closure of the furlough scheme."

A message from the Editor:

Advertisement

Hide Ad

Thank you for reading this story on our website. While I have your attention, I also have an important request to make of you.

With the coronavirus lockdown having a major impact on many of our advertisers - and consequently the revenue we receive - we are more reliant than ever on you taking out a digital subscription.

Subscribe to scotsman.com and enjoy unlimited access to Scottish news and information online and on our app. With a digital subscription, you can read more than 5 articles, see fewer ads, enjoy faster load times, and get access to exclusive newsletters and content. Visit https://www.scotsman.com/subscriptions now to sign up.

Our journalism costs money and we rely on advertising, print and digital revenues to help to support them. By supporting us, we are able to support you in providing trusted, fact-checked content for this website

 0 comments

Want to join the conversation? Please or to comment on this article.