Permanent and temporary job placements continued to fall in Scotland during August, according to new data.
Figures from the Royal Bank of Scotland show a current seven-month trend of reduction in job placements, although the rate is reducing.
Permanent placements were 4.4 points behind last month, while temporary were two points behind July.
The trend between Scotland and the UK diverged in August, as temporary jobs rose sharply at the national level.
Sebastian Burnside, chief economist at Royal Bank of Scotland, said: “Conditions across the Scottish labour market remained challenging in August, with recruiters signalling further reductions in permanent placements and temporary billings.
“That said, the rates of decline eased further, with permanent appointments falling at the softest pace since February, while the reduction in temp billings was only marginal.
“Meanwhile, redundancies were again linked to a substantial increase in candidate availability.
“The supply of permanent staff rose at the quickest pace since April 2009, whilst temp candidate availability also increased markedly.
“With demand and supply imbalances ongoing, there was further downwards pressure on pay.
“Overall, the data are encouraging in the context of the unprecedented drops in hiring activity recorded in April through to June.
“But, the labour market is yet to begin its recovery, and may require further support measures in order to fully recovery from the effects of the pandemic.”
Recruiters in Scotland signalled a reduction in average salaries awarded to permanent new joiners in August.
This has been a sequence of decline ongoing since April.
The latest fall in salaries was the softest in the current sequence but remained marked overall.
A fifth consecutive monthly reduction in average hourly rates of pay for short-term staff in Scotland was recorded during August.
This rate of decline was the slowest seen since March.
The data was collected from about 100 Scottish recruitment and employment consultancies during August.
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