Contractor demand in Scotland continued to grow in August, albeit at a slower pace than in previous months. IT and engineering contractors were second and third place respectively in the demand tables. Rates also increased, driven by client demand for contractors.
These figures from the Bank of Scotland Report on Jobs for August 2011 confirm that the Scottish labour market has outperformed the rest of the UK over the summer.
They also show that Aberdeen “recorded the fastest increase in temp billings”, suggesting renewed confidence in the oil and gas and offshore sector. However, the Bank of Scotland Labour Market Barometer, which provides a snapshot of labour market conditions, has fallen to a five-month low.
According to Bank of Scotland Chief Economist Donald MacRae, sustaining this growth in the face of a global economic slowdown will be tough: “This latest Report on Jobs shows a further improvement in Scottish labour market conditions in August,” he says. “However, the Barometer has fallen to a five-month low, indicating that maintaining this improvement throughout the winter months will be challenging in the teeth of a global slowdown.”
Engineering and construction contractor demand has shown its strongest increase since November 2007, but it fell short of the fast pace of growth in the IT and computing sectors, which were beaten into second place in the demand table behind hotel and catering.
Nearly a third of Scottish recruiters said that the number of people seeking contract and temp work increased in August, matching a UK-wide trend of more workers choosing contracting and temporary work over permanent employment. But despite the increased availability of contractors, client demand edged hourly rates higher, above the long-run average and faster than in the previous month.
With a heavy bias towards public sector employment in Scotland, the future performance of the Scottish contracting market may depend on whether the private sector can replace public sector jobs being cut. Whether Scotland can continue to outperform the rest of the UK will depend on private sector clients in growth areas like oil and gas, energy and games development recruiting former public servants as the UK’s austerity measures take effect north of the border.
Published: Monday, September 19, 2011
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