Hiring activity slows for second month but starting pay up – report

Hiring activity in Scotland has slowed for a second month, a report from the Royal Bank of Scotland has found.

The bank’s monthly report on jobs also found that rates of starting pay are increasing as employers seek to entice staff with the right skills.

About 100 Scottish recruitment and employment consultancies provided data for the report on June’s job activity.

It found the increase in permanent staff appointments was the weakest since February 2021.

The report also noted a sharp drop in permanent contract availability in June, which was linked to “ongoing skill shortages, a competitive labour market and Brexit”.

Sebastian Burnside, chief economist at Royal Bank of Scotland, said: “For the second month running we have seen a slowdown in permanent staff hiring across Scotland in June.

“While the latest upturn was only slightly softer than that seen in May, it was nonetheless the weakest increase in permanent staff appointments since February 2021.

“However, temp billings grew at an accelerated rate during June, after the respective index hit a four-month low in May.”

He continued: “June data also highlighted that demand for labour increased strongly, though rates of vacancy growth did ease compared to May.

“As a result, increases in starting pay remained sharp, with both salaries and wages rising at a faster rate than compared to the preceding month.

“Low staff availability and skills shortages meant that the labour market remained unfavourable for the employer during June, who are having to increasingly up pay offers in order to attract and secure staff with the right skills.”