According to the latest Royal Bank of Scotland Report on Jobs, there was a renewed rise in hiring activity across Scotland in November.

The Report on Jobs is based on a monthly survey of around 70 recruitment and employment consultants, providing an up-to-date view of Scottish labour market trends.

The data for last month showed that there were mild expansions for both permanent placements and temp billings, amid reports of successful recruitment campaigns and the commencement of projects with clients.

In terms of labour supply, and while permanent staff availability fell due to increased hesitancy given the economic climate, temp candidate availability expanded for the second month running, in part due to redundancies.

Meanwhile, overall pay pressures remained strong, with employers raising starting salaries and wages to attract suitable workers as skill shortages continue.

Permanent Placements Rise
Following three consecutive months of decline, recruiters in Scotland pointed to a renewed rise in permanent staff appointments in November. While the rate of growth was modest, it still contrasted with a steep downturn at the UK level.

Temporary staff billings rose slightly across Scotland too, with the upturn ending a 13-month period of decline. A fresh contraction in temp billings was recorded across the UK as a whole.

Permanent Staff Availability Falls
The availability of candidates to fill permanent vacancies in Scotland decreased further last month, extending the current sequence of decline which started in February 2021. Meanwhile, permanent staff supply expanded further at the UK level, and at a rate which was the most pronounced since December 2020.

Scottish recruiters recorded an expansion of temp candidate supply in November, which rose for the first time in over two-and-a-half-years in October. Redundancies were linked by some respondents to the latest expansion of short-term worker supply. The rate of growth in this area was slower in Scotland than the UK-wide trend.

Average Starting Salaries Rise
A steep rise in permanent starting salaries was also recorded, extending the current run of salary growth to three years. Recruiters noted businesses were willing to pay higher salaries to attract the right talent as shortages in key skills remain. Scottish starting salaries increased at a quicker pace than seen across the UK for the sixth month running.

The current period of temp pay growth was also stretched to three years in November.

Permanent Vacancies Fall
Demand for permanent staff fell for the fourth month running in November. The rate of contraction was the strongest in three years, with the downturn in demand for permanent workers in Scotland steeper than that seen at the UK level.

A fourth consecutive monthly deterioration in demand for temporary staff was also recorded. The pace of contraction was sharp, though it eased in October, and despite the fact that temp vacancies expanded modestly across the UK as a whole.

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Speaking on the findings for November, Sebastian Burnside, chief economist at Royal Bank of Scotland, commented: “Recruitment activity across Scotland improved slightly in the penultimate month of 2023.

“Successful recruitment drives and the commencement of projects at clients supported increases in both permanent placements and temp billings during the penultimate month. The fresh and broad-based upturn in hiring contrasted with a downturn across the UK as whole, with permanent staff recruitment particularly weak at the UK level. It is difficult to know whether the increases can be sustained in December and into the coming year, however, given the fall in overall vacancies.

“In terms of pay, a lack of suitably-skilled candidates often led employers to bump up their pay offers to attract the right talent, making it a good time for job seekers if they wish to secure a better paid role.”