Tag: employment

Hospitality expert endorses industry as lasting career option

A SENIOR figure in Edinburgh’s hospitality scene is sharing how the industry can provide a long-term career path, citing how she wants to shake up how jobs in the sector are viewed in Scotland. 

Jackie Hudson plays a key role in driving the strategic direction at city-centre venue Surgeons Quarter which comprises the city’s largest independent hotel, Ten Hill Place, along with a thriving conference and events business that maximises the commercial use of the Royal College of Surgeons of Edinburgh (RCSEd) buildings and venues.

After 17 years of working in the industry is citing her experience to encourage others not to view it as a short-term job solution, of which she was once guilty of, having started in an events manager role after completing college while initially thinking of undertaking a career teaching maths.

As the industry recovers from the pandemic and manoeuvres continual economic fallout including a prolonged hiring crisis, Jackie believes now is the opportune time to make the move into hospitality.

These challenges have introduced positive changes across working hours, pay, training and development with more organisations increasing incentives – which previously were deemed key deterrents when viewing the industry as a long-term career plan.

Jackie (41), who serves as Revenue Manager and is part of Surgeons Quarter’s senior management team, said: “Working in the hospitality industry has presented opportunities I could only have dreamed of. It can be turbulent, busy and challenging but isn’t every industry like that these days?

“As an industry we’ve perhaps been too shy to shout about what a career can mean. I’d say lots of organisations have really had to focus on their development opportunities, conditions and base pay. I’m confident that we are at the very forefront of this nationally and striving to stay there.

“If you love interacting with people, want to create your own niche and are ready to learn from real life experience, the hospitality industry is the perfect career choice for you.

I’m also extremely proud to play a part in marketing Edinburgh on a national and international level. When I first started out, I never would’ve thought I’d be forecasting the revenue across such a diverse portfolio business.”

Highlighting the breadth of experiences Jackie has been able to undertake at Surgeons Quarter, earlier this month she was invited by Surgeons Quarter’s Managing Director, Scott Mitchell, to accompany him to the RCSEd’s International Conference in Chennai, India.

Scott said: “Jackie is a real lynchpin within our business. She isn’t front and centre at events or with our clients, so perhaps doesn’t always get the spotlight she deserves. 

“She is the embodiment of somebody that has carved a very strong career in hospitality and it’s been a privilege to see her develop and thrive as part of our team.”

As part of Jackie’s role, she plays an active part in recruitment and has a keen interest in building a diverse workforce to incorporate a variety of skills and abilities.

With over 22 different nationalities making up the 178-strong team, the multicultural business has placed focus on professional development and bringing the benefits of a career in the industry to forefront for those just starting out.

Surgeons Quarter promotes, sells and manages all commercial activities held within the RCSEd campus, which includes Ten Hill Place Hotel.

Since 2021 it has secured the Living Wage Accreditation while also increasing its team’s pension contributions to 7.5%.

For more information on events, conferences and meeting space at Surgeons Quarter visit: https://www.surgeonsquarter.com/conferences-meetings/

A new approach to work

Paper outlines plans for fairer labour market

A new single rate for the national minimum wage to reflect the increased cost of living, and more effective employment law to protect workers’ rights underpin plans to build a fairer labour market in an independent Scotland, according to Deputy First Minister John Swinney.

Following publication of the paper Building a New Scotland: A stronger economy with independence, Mr Swinney said the powers of independence would allow the Scottish Government to build a fairer, more equal future for all workers. This includes new measures to improve access to flexible working and better industrial relations.

Deputy First Minister John Swinney said: “Improving job security, wages and work-life balance are essential to delivering a more socially just Scotland. The UK labour market model has generated high income inequality while failing to drive productivity growth.

“Compared to independent European countries similar to Scotland, the UK has a higher prevalence of low pay, a bigger gender pay gap, longer working hours and significantly lower statutory sick pay.

“The Scottish Government is committed to Fair Work, but we could go much further to strengthen that agenda in an independent Scotland, developing a legal framework that more effectively addresses the workplace challenges of the 21st century. It would give us an opportunity to redesign the system to better meet the needs of Scotland’s workers and employers.”

Specific measures proposed in the paper include:

  • establishing a Scottish Fair Pay Commission to lead a new approach to setting a national minimum wage, working with employers, trade unions and government
  • improving pay and conditions with a single rate minimum wage for all age groups and better access to flexible work to help parents and carers
  • repealing the UK Trade Union Act 2016 as part of developing an approach to industrial relations which suits both workers and employers
  • introducing a law to help workers organise co-operative buyouts or rescues when a business is up for sale or under threat
  • legislating to support workers in precarious employment, and banning the practice of staff being made redundant and re-hired on reduced wages and conditions
  • increasing transparency in pay reporting and data to address gender, ethnicity and disability pay gaps and building on Scottish Government work to break down barriers to employment

The paper outlines how it would be easier for an independent Scotland to deal with labour market shocks.

In responding to the global financial crisis and pandemic, other countries were able to quickly draw on existing institutions and initiatives. This could include a permanent short-time working scheme, modelled on the German Kurzarbeit programme which provides compensation for private sector workers whose hours are reduced because of economic difficulty. A scheme like this in Scotland could help retain skills, reduce long-term unemployment and the associated costs and allow for more rapid economic recovery.

Job Security Councils, modelled on a Swedish initiative, could provide support to workers who have lost – or are at risk of losing – their jobs. These non-profit foundations led by social partners, employer representative bodies and trades unions, would help workers find new employment by providing a range of advice and high-quality retraining.

Building a New Scotland: A stronger economy with independence is the third paper in the Building a New Scotland series which will form a prospectus to enable people to make an informed choice about Scotland’s future before any referendum on independence takes place.

Business activity falls for second month running amid sharper falls in new work

  • Accelerated contraction in new work
  • Sentiment weakens further in September
  • Inflation remains elevated, but softens

Business activity across Scotland’s private sector contracted again in September, according to the latest Royal Bank of Scotland PMI® data. The seasonally adjusted headline Royal Bank of Scotland Business Activity Index – a measure of combined manufacturing and service sector output – was little-changed from 47.8 in August at 48.0, signalling a second consecutive month of contraction.

Despite easing, a high inflationary environment drove the latest decline in business activity and new orders, with the rate of contraction for the latter gaining momentum.

The challenging conditions meant that the degree of confidence further weakened during September. The latest reading registered a 28-month low, suggesting subdued performance as we progress into the final quarter of the year.

New business received at Scottish private sector companies contracted for the third month running during September. The rate of reduction quickened on the month and was solid overall. Inflationary pressures and the cost-of-living crisis were primarily linked to the latest downturn. 

At the sectoral level, manufacturing firms reported the softest decline in factory orders in three months, while services providers reported their first contraction since March 2021.

Amid soaring prices and recession fears, overall activity expectations weakened for the second consecutive month in Scotland’s private sector in September. Business confidence hit a 28-month low, posting below the average recorded over the series history and much weaker than the UK-wide average.

As has been the case since April 2021, employment across Scotland’s private sector increased in September. According to anecdotal evidence, successful hiring was in part linked to fresh graduates entering the workforce. While the respective seasonally adjusted index improved marginally from the that seen in August, it was the second-lowest reading in 17 months.

The pace of employment growth in Scotland was softer than the UK average.

September data revealed a reduction in backlogs of work for the fourth consecutive month at private sector companies in Scotland. The rate of depletion quickened to the fastest in 20 months. Respondents frequently mentioned the fall in backlogs reflected fewer new orders.

The rate of reduction at Scottish private sector companies was quicker than the UK-wide average which, in contrast to Scotland, softened during September.

For the twenty-eighth month running, average cost burdens rose across private sector firms in Scotland during September. The rise was largely blamed on inflationary pressures in labour market and supply chains. Despite the rate of input price inflation remaining historically high, the latest incline was the softest since August 2021 with both sectors noting slower rates of inflation.

Moreover, the pace of inflation in Scotland lagged behind that seen at the UK level, posting the second-softest of the 12 monitored regions ahead of the South West of England.

Scotland’s private sector firms raised their charges during September, thereby stretching the current run of output price inflation to 23 months. According to panellists, prices were raised primarily to offset increasing costs. That said, the rate of output price inflation was the weakest in 13 months and the softest of the 12 monitored UK regions.

Source: Royal Bank of Scotland, S&P Global.

Judith Cruickshank, Chair, Scotland Board, Royal Bank of Scotland, commented: “Business activity and new orders continued to decrease across the Scottish private sector during September, thereby stretching the current runs of contraction to two and three months respectively.

“The squeeze on customer disposable incomes amid a high inflation environment underpinned the latest downturn in output and new business.

“Despite falling business requirements, firms raised employment for the eighteenth successive month, albeit at a moderate pace. The combination of a drop in new work and expanding workforces allowed firms to work through their backlogs.  

“The post-pandemic boom is clearly at an end, as the ongoing cost-of-living crisis plays an increasingly important role. Moreover, the 12-month outlook continues to weaken.”

St James Quarter and Fuse team up to support Scottish employment market

Following the success of last year’s recruitment fair, St James Quarter has partnered with retail and hospitality recruitment service FUSE to provide a new programme of career opportunities for the sector across Scotland. 

The recruitment fair will be held in St James Quarter’s Level 1 unit beside Next from 10:00 – 17:00 on Tuesday 11th of October and those interested are encouraged to sign up now.  

In 2021, the recruitment fair saw 300 local applicants attend on the day with 150 successful candidates invited for paid trial shifts and second interviews with many offered a job on the same day. The joint initiative is intended to provide a much needed boost for the local economy by creating new job opportunities across Edinburgh’s retail and hospitality industry.  

St James Quarter is on track to sustain the target of 3,000 new job roles for the local economy with an additional 1,500 vacancies set to be created following continual expansion plans within The Quarter and the development of W Hotel. FUSE has already successfully placed 2,000 candidates within The Quarter since its opening.  

This year at the recruitment fair, FUSE will be recruiting for 300 vacancies with a variety of positions from Christmas temp seasonal staff through to full and part time roles in a range of levels in retail, restaurant management, customer service and maintenance. Brands from across the Quarter such as Stradivarius, Bonnie and Wild, John Lewis & Partners, Coach, NEOM Organics and Duck & Waffle will all be looking for their newest team members. 

In a commitment to support the future of retail in Scotland, St James Quarter and FUSE are continuing to work together to help boost employment in the capital after 62% of those working at The Quarter revealed in a staff survey that their previous job was affected by the COVID-19 pandemic, leaving them unemployed and struggling to find work. 

Kitti Hovarth, Sales Assistant at Pull & Bear, who found work at St James Quarter through FUSE shares their experience: “During the pandemic, and like many others, I was left unemployed.

“I was unsure where I wanted to take my career and what opportunities were available to me at such an uncertain time. After finding out about FUSE and the recruitment fair, I was able to land a job at St James Quarter as a Sales Assistant.

“This opportunity has allowed me to not only gain experience and expand my skillset in customer service and teamwork, but it’s also boosted my confidence and taken a huge worry off my shoulders” 

Jennifer Laseen, Hospitality and F&B Director, St James Quarter said: “We are delighted to be working with FUSE again to find the right candidates for some amazing roles we have across the Quarter.

“The team at St James Quarter are proud to continue to support our team members and nurture new talent and we are encouraging all those who are interested to sign up to the recruitment fair now to avoid any disappointment.” 

Niamh Murphy, FUSE Manager, added: “The FUSE team are passionate about supporting St James Quarter and the local Edinburgh communities match employees to the right role within the Quarter.  

“Our expert knowledge of the industry allows us to provide a tailored approach to recruitment and continue to support team members and employers with further training, accredited qualifications, and ongoing networking opportunities” 

Royal Bank of Scotland Jobs report shows permanent placements increase in September, but growth “mild”

  • Fresh uplift in permanent staff appointments, but growth only mild
  • Temp billings rise at quicker pace
  • Pay pressures ease, but remain historically sharp

Scotland’s labour market saw an improvement in overall hiring activity in September, according to the latest Royal Bank of Scotland Report on Jobs survey, with recruiters reporting a fresh rise in permanent placements and stronger temp billings growth.

The seasonally adjusted Permanent Placements Index rose back above the neutral 50.0 mark, rising from 47.3 in August to 52.7 in September, to signal a mild uplift in permanent staff appointments, while temp billings increased at a strong and accelerated rate. 

At the same time, sustained growth of vacancies, combined with another deterioration in candidate availability, led to further upwards pressure on pay. Notably, both starting salaries and temp wages increased at historically sharp rates, despite easing since August.

Permanent placements return to growth

Adjusted for seasonal variation, the Permanent Placements Index rose back above the neutral level of 50.0 in September to signal a fresh rise in permanent staff appointments across Scotland. Panellists attributed the upturn to strong demand for staff and increased hiring activity amongst clients in some sectors. That said, the pace of increase was only mild.

September data pointed to sustained growth of temp billings across Scotland, extending the current sequence of upturn that began two years ago. The rate of expansion ticked up from August’s seven-month low and was solid overall.

The pace of increase in temp billings in Scotland was broadly in line with the trend seen for the UK as a whole.

Further marked drop in permanent candidate availability

The supply of permanent staff across Scotland continued to decrease in September, stretching the current sequence of contraction to 20 months. Skills shortages and high demand for staff reportedly drove the latest fall. Notably, the rate of decline quickened slightly on the month and was marked overall.

Scotland recorded a much sharper fall in permanent staff supply than that seen on average across the UK, with the pace of decline slowing slightly on the month at the national level.

Adjusted for seasonal variation, the Temporary Candidate Availability Index remained below the neutral 50.0 mark in September, signalling a nineteenth straight monthly deterioration in the supply of temp staff across Scotland and one that was rapid overall. Panellists cited strong demand for short-term workers and a reluctance among candidates to move roles. Although it remained much sharper than that seen at the national level, the pace of contraction was the slowest for six months.

Rate of starting salary inflation eases to 15-month low

September data signalled a sustained uplift in salaries awarded to permanent new joiners in Scotland, amid reports that strong demand for staff led to upwards pressure on pay. Though historically sharp, the rate of salary inflation was the slowest for 15 months, and weaker than that recorded for the UK as a whole.

A twenty-second monthly increase in hourly rates for short-term staff in Scotland was recorded in September. According to survey respondents, skills shortages were the primary cause of the latest rise. The rate of temp wage inflation softened to a four-month low, but was nonetheless sharp and outpaced the UK-wide average.

Permanent vacancies rise at slower rate

As has been the case in each month since February 2021, demand for permanent staff in Scotland increased in September. The rate of expansion was the softest seen for a year-and-a-half, albeit sharp by historical standards.

IT & Computing recorded the fastest rise in permanent vacancies, followed by Nursing/Medical/Care, while Hotel & Catering saw the slowest.

Temporary vacancies across Scotland continued to rise in September, extending the current sequence of growth to two years.  The rate of increase was the slowest since February 2021, but still sharp overall.

Across the monitored sectors, demand for temp staff was strongest in IT & Computing, followed by Accounts & Financial.

Sebastian Burnside, Chief Economist at Royal Bank of Scotland, commented: “Permanent staff appointments across Scotland rose during September following a moderate fall in August, amid reports of improved hiring activity at clients in some sectors and strong demand for workers.

“The rate of growth was only mild, but nonetheless outpaced the UK-wide average. Temp billings also increased, with growth ticking up since August to a solid pace.

“The imbalance between staff demand and supply continued to place upwards pressure on pay in September.

“The latest survey showed that both permanent and temporary staff availability continued to decline sharply, which drove further increases in temp pay and starting salaries at rates seldom seen in the history of the survey.”

Chancellor Kwasi Kwarteng ‘to get Britain working again’

  • The Chancellor is expected to announce reforms to the welfare system that will encourage thousands more into work and to boost their earnings, helping grow the economy.
  • Around 120,000 more benefit claimants will be asked to take active steps to seek more and better paid work, or face having their benefits reduced.
  • Over 50s to get more support to find work, boosting economic growth.

The Chancellor is this week expected to announce changes to Britain’s welfare system that will help boost people’s earnings, get them into work and support economic growth.

Changes to Universal Credit expected to be announced later this week will require benefit claimants working up to 15 hours a week at National Living Wage to meet regularly with their Work Coach and take active steps to increase their earnings or face having their benefits reduced.

This gradual expansion is an increase from the 12-hour threshold and will bring an additional 120,000 benefit claimants into the Intensive Work Search Regime.

With more than 1.2 million job vacancies across the UK, Work Coaches will set clear expectations with claimants and make sure they stick to their commitments. These commitments could include applying for jobs, attending interviews or increasing their hours. People who don’t fulfil their job-search commitments without good reason could have their benefits reduced in line with existing benefit sanctions policy.

Eligible claimants over 50 years old, including new claimants and the long-term unemployed, will also get extra support from Work Coaches. The newly unemployed will get 9 months of targeted sessions, and people who are long-term unemployed will receive a booster session followed by 3 months of intensive employment support.

Rising economic inactivity in the over 50s is contributing to shortages in the jobs market, driving up inflation and limiting growth. Returning to pre-pandemic activity rates in the over 50s could boost the level of GDP by up to 1 percentage point.

Chancellor Kwasi Kwarteng said: “Our jobs market is remarkably resilient, but it is not perfect. While unemployment is at is at its lowest rate for nearly fifty years, the high number of vacancies that still exist and inactivity in the labour market is limiting economic growth.

“We must get Britain working again. These gradual changes focus on getting people back into work and maximising the hours people take on to help grow the economy and raise living standards for all.

“It’s a win-win. It boosts incomes for families and helps businesses get the domestic workers they need, all while supporting economic growth.”

Secretary of State for Work and Pensions Chloe Smith MP said: “As we continue to face economic challenges and labour market shortages, we are committed to helping people on lower incomes to boost their pay – because we know work is one of the best ways to support your family and help grow our economy.

“Whether it’s increasing their hours in their current role, entering a new sector or switching careers, we want people of all ages and all stages to be able to progress into fulfilling careers.

“The expertise our dedicated DWP Work Coaches bring, will help to drive this change by removing barriers to progression and opening up opportunities for training and building skills, to increase earnings.”

These changes will be Great Britain-wide and, in line with usual practice, the UK Government will work with the Northern Ireland Civil Service to determine the most suitable way to deliver support in Northern Ireland in due course.

Certain groups will remain exempt from sanctions, including people who are unable to work due to long-term sickness or a disability.

M & S Ocean Terminal store to close

Marks and Spencer is to close it’s food store in Ocean Terminal. The store will close before the end of the year, but the company insists ‘the vast majority’ of Leith staff will be offered new jobs other M & S stores.

Scott Munro, M&S’s regional manager for the east of Scotland, said: “Shopping habits are changing and we’re reshaping our store estate across Scotland and the UK to make sure we’re reflecting the needs of our customers.

“As part of this transformation, we have today announced to colleagues our decision to close the M&S Ocean Terminal store at Ocean Terminal later this year.

“Our priority is to support our colleagues through these changes and we are confident of being able to offer new roles to the vast majority of those affected.

“We are committed to Edinburgh and this decision means there are more opportunities to invest in our eight other stores across the city.”

A spokesperson for Ocean Terminal said:  “Proposals by M&S to downsize its portfolio of stores across the UK have been well known for some time. Owing to the changing direction of M&S’s business needs, they have taken the decision not to renew their lease at Ocean Terminal. We wish them well for the future.  

“But their decision does not impact on our plans. Instead, it has allowed us to actively pursue a range of opportunities for partnership with alternative food retailers as part of ongoing plans to reconfigure Ocean Terminal and shape the ongoing transformation of the centre and its important waterfront location.” 

Responding to news of the closure of the Marks & Spencer store in Ocean Terminal, Foysol Choudhury MSP said: “I was shocked to find out today that the M&S store in Ocean Terminal is set for closure with the loss of a number of jobs. This could be the death knell for Ocean Terminal.

“Marks & Spencer is one of Ocean Terminal’s remaining flagship outlets for the area.

“With the tram set to arrive before long, I fear that this is a short-term decision that will damage Leith in the long-term.

“I will be writing to Marks & Spencer to seek a meeting to urgently review this decision.”

Expert reveals CV Red Flags to avoid

The average recruiter or hiring manager spends 6 to 8 seconds looking at a CV before they decide if it is suitable or not. 

On average in the UK, one position attracts around 250 CVs, which means that employers can immediately spot the red flags. CVs with cluttered layouts, lack of headings, or ones that are too long or too short will more than likely not be successful.  

However, if you are looking for a new job, experts at CV Maker have revealed the top red flags you should avoid when creating your CV, to help you be successful in applying for your dream role. Be sure to avoid these mistakes!  

1. Typos and grammatical errors  

Probably the first red flag that employers look out for, mistakes on your CV show that you don’t pay attention to detail. Minor mistakes shouldn’t be a cause for concern, however, if a CV is full of mistakes, it immediately sends the wrong message to a recruiter or hiring manager. 

Consider resending your CV if you notice multiple typos or other major mistakes after you click send. While it might feel awkward, there are professional ways to resend a CV. It’s best to include a short explanation with your updated CV. Politely explain that you are sending an updated file and to please excuse yourself for the mistake. 

Make sure to use a spellchecker and have at least two people proofread your CV before you apply for a position.  

2. Unprofessional email address 

An unprofessional email address is another huge red flag for employers. Your CV is your professional calling card, the first impression a hiring manager creates for you before they have even met you. Make sure to get yourself a separate email account for your job search and keep your account name professional.  

Make sure you don’t use the email address you created when you were 15. This shows employers that you’re too lazy to create a new email address, or that you don’t value your professional career.  

If you’re struggling, use your last name and first initial or first and last name. This is clear and professional.  

3. Employment gaps 

Large gaps of time between them are one of the biggest CV red flags that head-hunters, recruiters, and hiring managers will immediately notice. One gap in employment isn’t that unusual, especially if you’ve travelled or started a family. However, if multiple gaps seem out of place, make sure you have a valid reason to explain these.  

Breaks in employment raise red flags because they could have a range of negative implications. There are exceptions, but most high performers don’t have huge gaps in their employment history. Employers might also fear you could do this again and quit the job when under pressure.  

Explaining a gap in a cover letter might help. If you do get invited to an interview, be ready with an honest and clear reason for the gap.  

4. Job hopping 

People job search for a new career for all kinds of reasons. Increased pay, improved benefits, better work-life balance, etc. However, frequent job hopping can be a cause for concern as an employer.  

Employers want to hire people they can invest in. One year, or less, isn’t enough time for an employee to become truly proficient in their role or make a meaningful impact on a company.  

If you have switched positions frequently, and your CV shows this, make sure you have valid reasons for this. Don’t mention that you just “needed a change” as this can indicate that you are inconsistent or unreliable.  

Some better reasons for job hopping, that you can explain in an interview, could be that you were recruited by another company, as this shows that you are a valuable team member. You could also mention that your previous role shifted from what you were initially hired to do, or even that you weren’t advancing as quickly as you’d like.  

5. Too much personal information 

Too much non-relevant personal information on your CV can also be a big red flag. Your CV is a document to highlight your skills, accomplishments, and work history. This needs to stay professional. 

Whilst showing a little personality on a CV is a green flag, too much personal information can deter employers from hiring you. Try to keep it short and concise and wait until the interview to let your personality shine through.  

The best way to show a little personality, that isn’t overbearing, is through your hobbies and interests. However, make sure these are relevant to your job role. 

Royal Bank of Scotland Report on Jobs

Permanent staff hires fall for first time in 20 months

  • Permanent placements fall for the first time since December 2020
  • Temp billings growth softens to seven-month low
  • Sustained pressure on pay amid candidate shortages 

August data revealed a renewed fall in permanent staff hires across Scotland, according to the latest Royal Bank of Scotland Report on Jobs survey.

The seasonally adjusted Permanent Placements Index fell below the 50.0 no-change mark, to signal a modest drop in permanent staff appointments that ended a 19-month period of expansion. Growth in temp billings meanwhile moderated to a seven-month low in August. According to panellists, skills and candidate shortages weighed on hiring activity.

However, some recruiters also noted that an economic slowdown and rising market uncertainty added to the loss of momentum across the Scottish labour market. At the same time, demand for staff continued to rise, which drove further increases in both starting salaries and hourly wages. 

Permanent placements fall for first time since December 2020

Scottish recruiters reported a fall in permanent staff appointments during August, thereby ending a 19-month period of expansion. Anecdotal evidence suggested that the contraction stemmed from a slowdown in market conditions and candidate shortages.

Though only modest, the reduction in Scotland contrasted with the trend seen across the UK as a whole, which saw a slightly quicker increase in permanent placements in August.

Temporary staff billings across Scotland increased for the twenty-fourth successive month during August. Though solid, the rate of expansion eased to the slowest since January and was below its long-run average. The uptick in temp billings was in part attributed to increased activity at clients. Where a reduction was reported, panellists cited, lingering COVID-19 impacts and rising economic uncertainty.

Moreover, the rate of increase in Scotland was weaker than that seen across the UK as a whole.

Decline in permanent candidate availability weakest since March

August data highlighted a further reduction in the supply of permanent candidates across Scotland. The respective seasonally adjusted index has now posted below the neutral 50.0 threshold for the nineteenth month running. Acute skill and candidate shortages were linked to the latest decline.

However, though the extent to which permanent staff availability contracted was the slowest in five months, it remained sharper than the UK-wide trend.

The availability of candidates to fill temporary roles in Scotland continued to decline during August, stretching the current run of contraction that began in March 2021. However, the rate of deterioration eased for the third month running and was the slowest since March.

Compared to the UK-wide average, Scotland registered a faster fall in temp candidate availability for the fifth successive month.

Starting salary inflation remains elevated in August

Recruitment agencies across Scotland reported a twenty-first consecutive monthly rise in salaries awarded to new permanent joiners during August. The rate of starting salary inflation quickened fractionally from July and was sharp, albeit the second-softest in 13 months. According to Scottish recruiters, labour shortages drove up salaries.

However, Scotland continued to record a softer rate of increase in starting salaries than that seen at the UK level.

August data revealed yet another sharp increase in average hourly pay for short-term staff across Scotland. The latest uptick extended the current run of expansion to 21 months. Moreover, the rate of growth picked up from July and was the second-fastest since December 2021. According to anecdotal evidence, firms continued to raise wages to attract workers amid labour and skill shortages.

Temp pay also increased at a quickened rate at the UK level during August, albeit one that remained weaker than that seen in Scotland.

Softest increase in demand for permanent staff for 17 months

Adjusted for seasonal variation, the Permanent Vacancies Index posted above the neutral 50.0 level to signal a nineteenth successive monthly increase in demand for permanent workers across Scotland during August. Though sharp and well above the series average, the rate of growth was the weakest since March 2021.

Of the eight monitored sectors, Nursing/Medical/Care saw the strongest upturn in permanent staff vacancies, followed by IT & Computing.

Demand for temporary staff in Scotland rose for the twenty-third month in a row during August. The respective index indicated a strong increase demand overall that was unchanged from July. Notably, the rate of expansion continued to outpace that seen across the UK as a whole.

Engineering & Construction recorded the fastest rise in temp vacancies across the monitored sectors, followed by IT & Computing.

Sebastian Burnside, Chief Economist at Royal Bank of Scotland, commented: “Since April, growth in permanent placements had softened, and now the latest data finally recorded the first fall in permanent staff hires in 20 months during August.

“A loss of momentum was also observed for temp billings, which rose at the softest pace since January. The weaker trends were accompanied by reports that rising economic uncertainty had limited recruitment activity.

“Moreover, labour supply and demand imbalances persisted. Acute skill and labour shortages weighed on the availability of candidates, while demand for labour continued to rise, albeit not as quickly as earlier in the year.

“With firms competing for labour, this resulted in further steep increases in starting salaries and temp wages during August.”

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