Contractor demand in Scotland showed the “most marked rise” in seven years, with contractor availability falling at a rate not seen since 2004. Certain core contracting disciplines could offer opportunities to contractors from elsewhere in the UK, where demand is less pronounced.
This is according to July’s Bank of Scotland Report on Jobs, which also shows sharp increases in demand in the core contracting sectors of engineering and construction and IT and computing.
“Demand for both permanent and temporary staff was expressed by a surge in vacancies accompanied by a drop in the number of candidates available,” notes Bank of Scotland chief economist Donald MacRae.
The Bank of Scotland Labour Market Barometer, which provides a snapshot of the labour market conditions across Scotland “climbed to a fresh survey high of 67.3 in June”. MacRae adds: “July’s Barometer provided further proof of the continuing recovery.”
ContractorCalculator CEO Dave Chaplin believes that Scotland’s contract market could provide opportunities for contractors on low-growth regions prepared to relocate: “IT, engineering and construction contractors currently working outside of Scotland clearly have a candidate-led market to go to if local market conditions are less favourable.”
The picture for two other core contracting sectors is less positive. Although still well into growth territory, the growth in financial and accounting contractor hiring dropped sharply during July, and the sector dropped to seventh place in the demand league table.
This could be due to seasonal factors, or it may signify a slow-down in the recovery of Scotland’s financial sector. However, in London financial sector hiring grew strongly, as the latest Morgan McKinley London Employment Monitor shows.
Scotland’s interim market also appears to be performing particularly poorly. The executive and professional category was in last place in the demand league table during June, and stayed there during July. Demand growth for interims in July was only slightly above the ‘no change’ mark.
Regionally, the contact market performed strongly across the whole of Scotland. Aberdeen experienced both the greatest increase in contractor agency billings alongside the sharpest drop in contractor availability. This could signify a period of accelerated hiring in the oil and gas sector, which had started to stagnate in recent months.
Contracting rates have also continued to climb, most likely in response to a shortfall of available contractors to fill vacant assignments. Glasgow and video games centre Dundee experienced the greatest increase in rates.
MacRae concludes: “These trends should lead to further gains in employment and eventually to an increase in overall earnings growth.The Scottish economy continues to recover strongly.”