In Scotland, salaries up but EU workers down

EPA/MAURITZ ANTIN

A cyclist passes the rear section of the Scottish parliament building with residential and working spaces, in the Holyrood area of Edinburgh, Scotland, United Kingdom.

In Scotland, salaries up but EU workers down


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The good news in Scotland is that permanent and temporary job hires experienced a “steep increase” last month with salary growth reaching a 10-month high at the beginning of the third quarter. The positive data in the HIS Markit Report on Jobs, however, has been overshadowed by reports that European Union workers are packing their bags ahead of Brexit.

Scotland’s Recruitment & Employment Confederation (REC) chief executive Kevin Green warned that employers are “struggling” as European Union workers leave in the wake of last summer’s Brexit vote.

As reported by The Scotsman, the survey of about 100 recruitment and employment agencies across Scotland found that the lift in the demand for staff was spearheaded by vacancies in the IT and computing sector, but both were behind the rate of growth for the UK overall.

The number of workers placed in permanent jobs rose again but at a marginally slower rate than 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.

One in five recruiters reported an increase in hourly pay rates for temporary and contract staff, while none reported a fall.

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

However, he also warned that although placements were rising rapidly in Scotland demand remained at a multi-year high.

“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,” he said.

“The parts of the economy most reliant on European workers are under even more pressure as many EU workers return home.”

Green added that “employers are not just struggling to hire the brightest and the best but also people to fill roles such as chefs, drivers and warehouse workers”.

He added: “We can’t ignore the importance of our relationship with the 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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