Scottish job survey shows market continues to improve

The report warned improvement in the market this year was likely to be "muted".

Scotland's labour market continued to improve last month and now sits at an eight-month high, a survey has found.

The Bank of Scotland jobs report for December said demand for permanent staff rose at its fastest pace for seven months.

Demand for temporary staff also increased at its fastest pace since October 2007.

However, the report also warned further improvement in the market this year was likely to be "muted".

The Bank of Scotland labour market barometer, which provides a snapshot of market conditions, registered 52.6 in December, up from November's figure of 50.9.

The barometer has now posted above the 50.0 "no-change" level for two consecutive months and suggests market conditions improved "at a solid pace".

Donald MacRae, chief economist at the Bank of Scotland, said the turnaround in the labour market, first identified in October, had been led by faster vacancy growth.

He commented: "All eight employment sectors registered vacancy growth in December, with the IT and computing sector recording the fastest rate of increase and a six-month high.

"However, the number of people seeking permanent employment fell for the first time since March 2008. Further improvement in the Scottish labour market in 2011 is likely to be muted."

The jobs report, which is compiled by Markit, is based on a monthly survey of more than 100 recruitment and employment consultants.