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‘Fragile’ recovery from recession

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The number of people finding permanent jobs has fallen for the first time in six months, according to a new report.

The rate of growth in vacancies for temporary jobs remains strong but slowed to a three-month low in February, the latest Bank of Scotland Report on Jobs said.

Recruitment agencies have reported no change in the average starting salary for permanent staff, ending a four-month run of increases.

The hourly rate for people in temporary jobs fell solidly and at the sharpest pace in 2 years. Only modest improvement in job market conditions was recorded during February, according to the bank’s labour market barometer.

It is compiled from levels of staff demand, employment and wages in permanent and temporary jobs.

At 51.2, down from 53.9 in January, the barometer is at its lowest for seven months and below the UK average (53.1) for the first time in almost two years. The figure is measured against a baseline of 50.

Anything above 50 represents an improvement in market conditions and below is a deterioration.

Donald MacRae, chief economist at the bank, said: “The February barometer showed Scottish job market conditions continuing to improve but at a marginal rate.”

The number of people appointed to permanent jobs fell for the first time in six months, while the growth in vacancies for permanent jobs was the slowest for over a year.

“These results highlight the fragility of the recovery from the recession.”