Higher salaries: fewer workers

Thursday 10th August 2017
Churn rate: Source: CareerBuilder and EMSI.

Good news for Scotland is that permanent and temporary job hires had a “steep increase” last month, with salary growth reaching a 10-month high at the beginning of the third quarter. But it has been offset by the HIS Market Report on Jobs, which notes that European Union workers are packing their bags ahead of Brexit.

Scotland’s REC (Recruitment & Employment Confederation) CEO  Kevin Green  (right) warned that employers are “struggling” as European Union workers leave in the wake of last summer’s Brexit vote. As reported by The Scotsman, a survey of about 100 recruitment and employment agencies in Scotland finds that the increase in the demand for staff is spearheaded by vacancies in the IT and computing sector, with both being behind the overall UK growth rate.

Numbers of workers placed in permanent jobs rose again, but  marginally slower  than in the previous month and lower the UK as a whole. Staff availability in Scotland fell in July with permanent staff declining at a steeper rate than temporary and contract workers.
Out of five recruiters, one could reported an increase in hourly pay rates for temporary and contract staff. None reported a fall in rates.

“Although slightly below the rest of the UK, permanent placements are rising rapidly in Scotland” Green noted.  “Starting salaries are also increasing, so for workers who want to boost their earnings, now is a good time to consider moving jobs”

However, he warns: “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 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 find people to fill roles such as chefs, drivers, and warehouse workers, “Green  notes. “We can’t ignore the importance of our relationship with 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”.

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