Skills shortage fuels wage hike

There was strong demand for computer workers

Skills shortages have fuelled a further rise in wage inflation for Scottish workers, according to latest figures.

The Bank of Scotland's labour market report also found that appointments were rising, underpinned by strengthened demand for staff.

Salaries rose for the 10th consecutive month, with rates of pay for temporary and contract staff also increasing.

The report's "barometer" for Scotland reached its highest level since data was first collected in January 2003.

It presents an average of survey indexes relating to demand for and availability of staff, appointments and pay awards.

With increasing skill shortages for a range of trades, wage inflation continued to accelerate in April Tim Crawford Group economist

Edinburgh was the city which saw the largest increase in the number of people finding permanent jobs in April.

The capital also saw the largest lift in pay rates for temporary workers, closely followed by Aberdeen.

The sharpest increase in salaries was recorded in Glasgow, where the rise was attributed to a steep deterioration in suitably skilled candidates.

Bank of Scotland group economist Tim Crawford said the report "gives a clear indication as to how the strengthening Scottish economy is leading to a tightening of the jobs market".

He said: "With increasing skill shortages for a range of trades, wage inflation continued to accelerate in April.

Temporary staff

"Recruitment consultancies have attributed strengthened demand for staff to improved business confidence at clients."

The strongest demand for permanent staff came from the upper end of the job market, such as computing, finance and professional workers.

Placings of permanent staff rose for the ninth month in a row, while billings for temporary staff rose for the 14th consecutive month.

The report, conducted by NTC Research, is based on a monthly survey of more than 100 recruitment and employment consultants.