Temporary jobs growth at highest since 2007

DEMAND for temporary staff from Scottish firms is rising at its fastest pace since October 2007, according to data out today.

The Bank of Scotland's monthly employment monitor report also found that demand for permanent staff increased at its highest rate for seven months.

The positive news took the labour market barometer - a tool designed to provide a single- figure snapshot of market conditions - from 50.9 in November to 52.6 last month.

Donald MacRae, chief economist at the Bank of Scotland, said: "The turnaround in the Scottish labour market first identified in October continues, led by faster vacancy growth.

"Having posted above the 50 no-change level for two consecutive months, the Barometer now sits at an eight month high and is almost level with the UK."

All sectors of the economy registered growth in the number of vacancies during December, with the information technology (IT) and computing industry recording the fastest rate of growth and hitting a six-month high.

But MacRae warned that further improvement in the Scottish labour market this year is likely to be "muted".

Many analysts are worried about the effect that the UK government's cutbacks - and the subsequent redundancies that will be made by the Scottish Government, local councils and other public bodies - will have on the jobs market.

Official figures released last week showed that the number of unemployed people in Scotland was down by 5,000 to 225,000 between September and November.

But Scotland's overall unemployment rate of 8.4 per cent is still higher than the UK's 7.9 per cent, giving business leaders and politicians cause for concern.

Employment north of the Border also increased by 18,000 to stand at just under 2.5 million.

December's Bank of Scotland report found that the number of people seeking permanent employment fell for the first time since March 2008. The report is based on a monthly questionnaire of 105 Scottish recruitment and employment agencies.