Growing optimism about the economy has seen a boom in Scottish recruitment, the Bank of Scotland has revealed.

According to the bank’s monthly ‘barometer’ the Scottish job market improved for the twelfth successive month in July. For the first time in a year Scottish recruitment has outpaced that of the UK.

This hiring drive has caused a shortage of skilled candidates in turn exerting a pressure to increase pay among temporary and permanent staff.

Edinburgh led the way, recording the sharpest increase in staff placements, pipping Aberdeen and Glasgow at the post. Only in Dundee were permanent staff placements lower than in June.

Hotel and catering staff were in most demand with recruiters. While blue collar workers ranked last in the ‘most wanted’ list for permanent posts while, conversely topping the charts for temporary vacancies.

Commenting on the findings, Bank of Scotland’s Tim Crawford said:

“The latest Labour Market Report indicates that demand for staff in Scotland improved significantly again during July, as rising levels of new business in the Scottish economy encouraged a growing number of firms to invest in additional production capacity.

“Recruitment consultancies, whilst placing a rising number of candidates in new jobs, reported widening skill shortages and this has again forced up average starting salaries markedly.”