Contractors in Scotland are becoming increasingly polarised between IT and engineering specialists, who are enjoying strong demand, and interim management and financial contractors, for whom client demand is falling.
This is according to the Bank of Scotland Report on Jobs for April 2013, which show that overall contractor and temp demand across the country is at a three-month high. Agency billings also reached a three-month high, which recruiters believe is due to increased business activity by clients.
“These results provide further evidence for the Scottish economy beginning to demonstrate a more robust recovery,” notes Bank of Scotland chief economist Donald MacRae. “Both the number of people placed into permanent and temporary jobs rose while vacancies increased in the month.”
Engineering and construction contractors retained the number two spot in the demand league table, after nursing/medical/care in first place. IT and computing also retained its third place after engineering and construction. And the increase in demand across both core contracting sectors was ‘marked’, according to the report.
In contrast, demand for interim management contractors, who come into the report’s executive and professional category, fell sharply for yet another month. April’s position marks three consecutive months of contraction in the demand for interims across Scotland.
Financial and accounting contractors joined the interims in negative territory during April, with the index for the sector falling below the 50-mark that signifies growth. Demand for financial and accounting contractors was barely in positive territory during March, suggesting the financial sector in Scotland may be performing less well.
This month’s report highlights some interesting regional variations. Dundee showed the strongest demand for contractors, which as the UK’s video games capital may signify an increase in IT contracts.
Contractors were in shortest supply in Aberdeen, which is perhaps unsurprising given the desperate skills shortages the oil and gas sector is experiencing. The seriousness of the skills situation is highlighted by the fact that Aberdeen is also experiencing the highest increases in pay for both permanent and contract staff, showing that the laws of supply and demand are at work.