Number of Scots finding permanent jobs falls

• Rate of growth in temporary jobs vacancies remains strong but slowed to a three-month low in February

• There has been no reported change in the average starting salary for permanent staff

• The hourly rate for people in temporary jobs has fallen

The rate of growth in vacancies for temporary jobs remains strong but slowed to a three-month low in February, the latest Bank of Scotland Report on Jobs said.

Recruitment agencies have reported no change in the average starting salary for permanent staff, ending a four-month run of increases.

The hourly rate for people in temporary jobs fell solidly and at the sharpest pace in two-and-a-half years.

Only modest improvement in job market conditions was recorded during February, according to the bank’s labour market barometer which is compiled from levels of staff demand, employment and wages in permanent and temporary jobs.

Below the UK average

At 51.2, down from 53.9 in January, the barometer is at its lowest for seven months and below the UK average (53.1) for the first time in almost two years. The figure is measured against a baseline of 50.

Anything above 50 represents an improvement in market conditions and below is a deterioration.

Donald MacRae, chief economist at the bank, said: “The February barometer showed Scottish job market conditions continuing to improve but at a marginal rate. The number of people appointed to permanent jobs fell for the first time in six months, while the growth in vacancies for permanent jobs was the slowest for over a year.

“The rate of growth in vacancies for temporary jobs remained strong, although slowing to a three-month low.

“These results highlight the fragility of the recovery from the recession.”

The report is based on a monthly survey of 105 recruitment and employment agencies operating in Scotland.

Demand for permanent staff increased in only three sectors during February, with IT/computing posting the strongest rise while both engineering/construction and nursing/medical care expanded at a slower rate.

A Scottish Government spokesperson said: “The 28th consecutive month of improvement in Scottish labour market conditions reported by the barometer is welcome. Our efforts to build sustainable economic growth continue and our budget includes a tax relief package for business worth over £560 million this year as well as a further £385 million package of economic stimulus to support jobs across the country.

“The Scottish Government is taking action where we can and we are seeing results, but there is so much more that we could be doing with the full economic and fiscal powers of independence to strengthen our economy and create jobs.”