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Scotland contracting market hits three-month high

Contractor Demand in Scotland Ranked By Sector

  1. Nursing/Medical/Care
  2. IT & Computing
  3. Accounts & Financial
  4. Blue Collar
  5. Hotel & Catering
  6. Engineering and Construction
  7. Secretarial & Clerical
  8. Executive and Professional

Despite all the ''crunches'' and ''squeezes,'' you've been reading about, the contracting market in Scotland is at a three-month high.

Sharpest Pace in Months

Contractor billings in Scotland increased at its sharpest pace for three months, according to the Edinburgh-based Bank of Scotland's Labour Market Report which was published on March 17. This is accompanied by a slight decline in the permanent job market.

The decline doesn't worry Bank of Scotland chief economist Martin Ellis:

''It is not surprising that Scottish labour market conditions continued to ease in February given the anticipated moderation in Scottish economic growth this year. Nonetheless, with Scotland posting a stronger expansion of demand for permanent staff than that recorded across the UK overall for the first time in five months and contractor billings in Scotland increasing at its sharpest pace for three months, the outlook for the Scottish jobs market remains firm.''

With contractor billings in Scotland increasing at its sharpest pace for three months, the outlook for the Scottish jobs market remains firm

Martin Ellis-Bank of Scotland

Sector demand breakdown is clearly indicated above, with IT and Computing second only to health care for contractor demand. And despite all the trouble that banks are experiencing, demand for contractors in financial services is still ranked third in Scotland. But demand rose for all eight categories of temporary/contract staff.

If Proof Were Needed...

Again and again ContractorCalculator is seeing a kind of 'de-coupling' between the slower economic conditions and contractor demand which increases regardless.

Perhaps this is because industry sees that highly skilled and experienced contractors make business more competitive, and at a lower cost? Or it may simply be a function of the skills shortage--although highly skilled high-tech permanent employees aren't seeing the same kind of demand.

The Bank of Scotland study leans in the direction of the latter. It notes that the availability of candidates to fill temporary/contract roles fell at the sharpest rate in three months, although the drop was moderate and much weaker than that signalled for permanent staff.

Aberdeen Biggest Market

Aberdeen continued to be the biggest market for contractors in Scotland, with Edinburgh second, in terms of demand growth. In terms of pay, Dundee was the most important market.

Overall, demand in Scotland for both permanent and contract staff remained higher than that of the rest of the UK.

There is reasonable economic strength to rely on

Martin Ellis-Bank of Scotland

For Ellis, there is no reason to assume that this should change in the coming months as the conditions on the Scotland market are not expected to worsen. ''There is reasonable economic strength to rely on,'' Ellis adds.

This report, conducted by the London-based NTC Economics, is based on a monthly survey of over 100 recruitment and employment consultants, and provides up-to-date information on Scottish labour market trends and is seasonally adjusted.

Published: Tuesday, 18 March 2008

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