Hiring activity slows amid challenging economic conditions

Permanent appointments and temporary billings in July fell at the slowest rate since February and January.

Hiring activity slows amid challenging economic conditions Pixabay

Hiring activity in Scotland was down last month amid challenging conditions caused by the coronavirus pandemic.

The Royal Bank of Scotland Report on Jobs for July said permanent appointments and temporary billings fell at the slowest rate since February and January.

There was further downward pressure on pay, with a fourth successive monthly fall in permanent salaries.

Recruitment consultancies also reported a reduction in average hourly wage rates for short-term staff.

Sebastian Burnside, RBS chief economist, said: “Latest survey data continue to highlight the immensely challenging conditions encompassing the Scottish labour market at present.

“Although there were frequent mentions that looser restrictions around the Covid-19 pandemic had allowed businesses to reopen, substantial uncertainty and excess capacity is stifling firms’ appetite to take on additional staff.

“Where they do, feisty competition among candidates for roles is driving pay down further, as both permanent salaries and short-term wages declined markedly again.”

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