Report finds 'sharp improvement' in Scottish jobs market

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Permanent jobs and starting salaries are on the rise in Scotland, according to a new report.

The latest IHS Markit Report on Jobs indicated a "sharp improvement" in labour conditions last month.

There were "steep increases" in both permanent and temporary placements, as starting salaries hit a 10-month high.

However, the Recruitment and Employment Confederation (REC) warned that employers were "struggling" as European Union workers left.

The survey of about 100 recruitment and employment agencies across Scotland found a rise in demand for permanent and temporary staff, led by vacancies in IT and computing.

However, both were behind the rate of growth for the UK overall.

The number of workers placed in permanent jobs rose again, but at a marginally slower rate than the previous month.

Staff availability in Scotland fell in July, with permanent staff declining at a steeper rate than temporary and contract workers.

Meanwhile, starting salaries rose at their fastest rate in 10 months, with one in five recruiters reporting an increase in hourly pay rates for temporary and contract staff.

REC chief executive Kevin Green said: "It's clear that employers are having to work even harder to fill jobs as vacancies rise and candidate availability shrinks.

"UK employment remains at an all-time high and looks set to keep improving.

"The parts of the economy most reliant on European workers are under even more pressure as many EU workers return home.

"Employers are not just struggling to hire the brightest and the best but also people to fill roles such as chefs, drivers and warehouse workers."

He added: "We can't ignore the importance of our relationship with the EU to employers.

"If we want to keep our jobs market successful and vibrant, we must make it easier, not harder, for employers to access the people they need."