SCOTLAND'S tight recruitment market showed signs of settling in January, with underlying demand for both permanent and temporary staff continuing to rise, but at the most modest rates for 19 months.
According to the Bank of Scotland labour market barometer, rates of growth in permanent staff placements and temporary staff billings were down from the high rates recorded during most of 2004. However, the availability of staff to fill permanent and temporary vacancies continues to fall.
Tim Crawford, group economist at Bank of Scotland, said: "The Scottish labour market continued to grow in January but there are signs that recruitment activity has slowed in the new year.
"For the month, staff placements grew at the lowest rate since mid-2003. However, the jobs market is still tight, and salaries continue to rise due to skills shortages."
While the report pointed to an 18th consecutive month of improving conditions in the Scottish jobs market, the rate of growth was the lowest since February 2004, and was below the UK average.
The strongest regional growth of permanent and staff placements was recorded in Aberdeen.
Glasgow also posted a sharp expansion, while in Dundee and Edinburgh the number of placements fell from the previous month. Aberdeen also registered the most marked rise in temporary or contract staff billings.
Meanwhile, billings rose in Glasgow but fell in Dundee and Edinburgh.
Permanent staff availability declined in all four of Scotland's main cities with the sharpest decline seen in Edinburgh. Temp staff availability also fell in all four, with the fastest rates of deterioration recorded in Dundee and Aberdeen.
The strongest growth in pay rates for both permanent and temp staff was again seen in Glasgow, while temp staff pay rates were reported to have fallen in Edinburgh.
The report also showed that persistent skill shortages among individual candidates contributed to a further rise in average pay rates as firms looked to attract suitably qualified staff. Inflationary pressure was moderated by slower growth of demand for staff.
However, the growth rates of permanent salaries were the lowest in nearly a year, while temporary and contract staff pay rates rose at the slowest pace in 18 months.
In January, recruitment consultancies reported stronger demand for all types of permanent employees, apart from secretarial and clerical staff.
The strongest improvement in demand - for both permanent and temporary staff - was again seen for nursing, medical and care workers.
Conducted by NTC, the labour market report is based on a monthly survey of more than 100 recruitment and employment consultants and is seasonally adjusted.
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