Plummeting candidate numbers have driven salary inflation to a record high, according to the latest instalment of a monthly employment market study by the Bank of Scotland.
The uplift came as the number of people looking for full-time work in Scotland fell last month with the slump the sharpest in the 11-year history of the bank’s closely-watched Report on Jobs.
But the “tightening of conditions” helped push up salaries at their fastest recorded rate, amid stronger demand for staff in a recovering economy.
The news will come as a boost to workers, many of whom have had to endure several years of wage increases below the rate of inflation.
Pressure on the employment market was underlined by the bank’s composite Labour Market Barometer, which also returned a survey-record high.
Its reading of 65.1 marked the first increase since February and followed a major rebound mirrored across the UK.
It was also significantly higher than the 50 level which marks an unchanged monthly picture.
Bank of Scotland chief economist Donald MacRae who last week insisted Scotland’s recovery was now “firmly embedded” after more encouraging news from purchasing managers in the manufacturing and construction industries said growth would continue.
“June’s Barometer reached a record high in the 11 years of the survey,” he said. “The number of people appointed to jobs increased, while vacancies grew at a robust rate.
“The number of candidates available for both permanent and temporary jobs fell, accompanied by a record rise in starting salaries.
“The recovery in the Scottish economy looks set to continue.”
The study, which is based on research compiled from data used by recruitment agencies, found ‘permanent candidate supply’ those looking for full-time work fell in the Dundee area, leading to a slowdown in the number of appointments.
But the city region was second behind Glasgow when it came to the rate of increase in wages.
Aberdeen saw a big rise in temporary posts and the biggest increase in temp hourly pay rates.
Demand for permanent staff was greatest in the financial services and accountancy sector.
IT and computing and nursing and medical care staff were also in demand.