Staff appointments in both the permanent and temporary sectors rose at strong rates, while vacancy and pay growth both accelerated. However, the number of candidates available to take up positions continued to climb in both the long-term and short-term jobs markets, a clear sign of continued labour market slack.
 
The Bank of Scotland Labour Market Barometer – a composite indicator designed to provide a single figure snapshot of labour market conditions – highlighted the generally improving trend, posting the highest reading since the start of 2008. Nevertheless, at 54.3, from 54.2, it signalled a pace of improvement that was below that seen across the UK as a whole, as has been the case in each of the past fourteen months.
 
Donald MacRae, Chief Economist at Bank of Scotland, (right) commented: “The April report has recorded the sharpest rise in demand for permanent staff in over two and a half years, which is further evidence of the recovery in the Scottish economy. Appointments to permanent jobs increased for the seventh consecutive month and vacancies for permanent jobs increased for the fifth month in a row, which is very encouraging. The Labour Market Barometer shows labour market conditions lagging slightly behind the UK, reflecting Scotland’s later exit from recession.”
 
Regional analysis 
 

Extending the current sequence to seven successive months, Edinburgh-based employment agencies reported the strongest rises in both permanent and temporary employment in April. This trend was reflected in pay awards, with recruitment consultants operating in Edinburgh reporting the fastest rises in both permanent and temp pay rates. Glasgow-based agencies registered the strongest monthly increase in candidate availability during the latest survey period.