By Daniel Hunter

The latest Bank of Scotland Report on Jobs signalled a marked improvement in Scottish job market conditions in June. Staff placements continued to rise on the back of the strongest rates of permanent and temporary vacancy growth in 14 and 21 months respectively.

Concurrently, candidate availability deteriorated further, while average pay increased at the sharpest pace for almost six years and at a much faster rate than the UK average.

The Bank of Scotland Labour Market Barometer — a composite indicator designed to provide a single figure snapshot of labour market conditions — remained above the 50.0 no-change mark in June, suggesting a further improvement in Scottish job market conditions. At 58.5, up sharply from May’s 54.7, the Barometer indicated that the latest improvement was the greatest since October 2007.

“June’s Labour Market Barometer rose to 58.5, its highest level since October 2007. Both the number of people appointed to permanent and temporary jobs rose in the month accompanied by sharp rises in vacancies," Donald MacRae, Chief Economist at Bank of Scotland, commented.

"Improvements in job market conditions were spread across all sectors. These results signal a further strengthening of the recovery in the Scottish economy and bode well for employment throughout 2013.”

Regional analysis
- Aberdeen posted the strongest rise in permanent placements for the second month running in June, while Dundee saw the fastest increase in temp staff billings.
- Recruiters in Glasgow and Aberdeen saw the strongest deteriorations in permanent and temporary staff availability respectively.
- Permanent salaries and temp hourly pay increased at the strongest rates in Edinburgh and Dundee respectively.

Wages and salaries
- Average permanent salaries rose markedly in June, with the rate of inflation the fastest since September 2007.
- Temp hourly pay increased at the sharpest rate for almost six years in June, and at a pace much faster than the UK average.
Employment
- Scottish recruiters reported a marked rise in the number of candidates placed into permanent work in June, with the latest increase the strongest in 14 months.
- Average billings from temporary staff increased at a solid pace in June, albeit the rate of growth eased from May.

Vacancies
- Demand for permanent staff rose markedly and at the fastest rate since April 2012.
- Temp vacancy growth accelerated to a 21-month high in June.

Availability
- The availability of permanent staff deteriorated further in June, with the latest reduction the strongest in 2013 to date.
- Candidate numbers seeking temporary work fell for the second month running in June, with the rate of decline the sharpest since October 2007.

Sectors
- All eight employment sectors posted a higher number of permanent job vacancies in June, led by IT & Computing. The weakest increase was reported for the Blue Collar sector.
- Demand for temporary staff increased in seven employment sectors during June, led by the Nursing/Medical/Care category. The only sector to see a reduction from May was Executive & Professional.

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