Contractor demand in Scotland rose sharply during April 2014, and rates grew at a six-year high as “an acute lack of available candidates” continues to drive skills shortages.
This is according to the latest Bank of Scotland Report on Jobs, which also highlights a sharp increase in demand for IT & computing and accounts and financial contractors, pointing to the continued recovery of Scotland’s financial sector.
These two core contracting sectors showed the second and third sharpest increases in demand during April, and Edinburgh – Scotland’s financial centre – saw the strongest rise in contractor hiring.
Contracting pay rates in Scotland showed the strongest rise since May 2008, further confirming that demand is fast outpacing supply. Edinburgh registered the highest pay awards, reinforcing the resurgence of the city’s financial sector.
Despite the worsening skills shortages, Bank of Scotland chief economist Donald MacRae remains positive: “The Scottish labour market continued to improve in April. Demand for staff was strong but accompanied by a lack of available candidates. Salary inflation picked up in the month, partially reflecting demand for staff.”
According to ContractorCalculator CEO Dave Chaplin, the current dynamics of Scotland’s labour markets present an ideal opportunity to relocate for contractors elsewhere in the UK where demand is not so strong, or where pay is lower.
“Contractors need no plant and equipment, can be highly mobile and able to move where the work is,” says Chaplin. “Scotland’s financial sector is recovering and the oil and gas sector continues to suffer from skills shortages, offering fertile ground for contractors seeking new contracts and higher rates.”
After IT and accounts and financial in second and third places respectively in the demand league table, engineering and construction was in fifth place and executive and professional in sixth. All four were well into growth territory, confirming that overall demand for contractors in the core contracting disciplines remains strong.