Bank of Scotland Report on Jobs

The Bank of Scotland Report on Jobs is produced by Markit. The report is designed to provide the most up-to-date picture of labour market trends in Scotland. The report is based on a monthly questionnaire survey of 105 recruitment and employment agencies operating in Scotland. The report uses an identical methodology to the highly regarded UK survey of recruitment consultancies conducted by Markit on behalf of the REC and KPMG. For further information please contact: Bank of Scotland Press Office The Mound Edinburgh, EH1 1YZ. Tel: 0131 655 5405 e-mail: ZoeRedhead@bankofscotland.co.uk Markit Economics Henley on Thames Oxon, RG9 1HG, UK Tel: +44 1491 461000 Fax: +44 1491 461001 e-mail: economics@markit.com

Permanent placements increase further in October, reflective of greater demand

Key findings:
n n n

Both permanent and temporary appointments increase, but at slower rates Demand for staff strengthens during October Marginal rise in average salaries

The Bank of Scotland Report on Jobs indicated an increase in both permanent and temporary staff placements in October. This partly reflected greater demand for staff, with recruitment agencies reporting a strong rise in both the number of permanent and temporary jobs. Candidate availability meanwhile continued to deteriorate over the month, particularly for permanent staff, and average pay edged slightly higher.

Summary of survey indicators

Index, 50 = no change on previous m onth
D ecrease Increase

PERMANENT
Perm anent placem ents D em and for perm anent staff Perm anent salaries A vailability of perm anent staff

Weaker rise in permanent placements

1 Employment 2 Vacancies 3 Sectoral demand: perm 4 Sectoral demand: temp 5 Staff availability 6 Pay pressures 7 UK regional summary

Permanent placements increased for the second month running in October. However, the rate of growth eased to a moderate pace and was slower than the UK average. Although Scottish recruitment consultancies attributed the rise in staff placements to greater demand, a number of agencies commented that some clients took a cautious approach towards hiring in the latest survey period. Staff placements in the temporary job market also increased in October, albeit the rate of growth slowed to a three-month low. Nonetheless, the latest rise in temp billings was strong and greater than that registered across the UK as a whole.

TEMPS
T em p billings D em and for tem porary staff T em p pay rates A vailability of tem porary staff

42

44

46

48

50

52

54

56

58

Stronger rates of vacancy growth

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Demand for both permanent and temporary staff rose strongly during the latest survey period, with the rates of vacancy growth quickening to five and three-month highs respectively. The most indemand permanent staff were those working in the Hotel & Catering sector. Concurrently, the number of candidates seeking permanent work fell further in October, with the latest reduction the second-sharpest for almost five years. Temp availability also deteriorated over the month, and to a greater extent than in September. Overall, a number of recruitment agencies reported lower availability of staff for the engineering trades.

DEMAND FOR PERMANENT STAFF Types of staff ranked by strength of demand in Scotland in October 2012
1 2 3 4 5 6 7 8 Hotel & Catering Engineering & Construction IT & Computing Secretarial & Clerical Nursing/Medical/Care Blue Collar Executive & Professional Accounts & Financial

DEMAND FOR TEMP/CONTRACT STAFF Types of staff ranked by strength of demand in Scotland in October 2012
1 2 3 4 5 6 7 8 IT & Computing Secretarial & Clerical Engineering & Construction Blue Collar Executive & Professional Nursing/Medical/Care Hotel & Catering Accounts & Financial

Average pay increases marginally

November 2012

In contrast to the reduction reported in September, average salaries awarded to permanent staff increased in October. That said, the rate of inflation was only marginal and much weaker than the longrun series average. Temp hourly pay rates also increased over the month, but at the weakest pace in the current four-month sequence of inflation.

Bank of Scotland Report on Jobs

Employment
Permanent Staff Placements
Q. Is the number of people placed in permanent jobs higher, the same or lower than one month ago? Permanent staff placements increased for the second consecutive month in October, with the majority of surveyed firms reporting an increase since September. That said, the rate of growth was moderate and weaker than the long-run series average. Although panellists attributed the latest increase in staff placements to greater client demand, a cautious approach to hiring by a number of firms acted as a drag. The UK as a whole also saw an increase in permanent placements the first such rise for five months. Moreover, the rate of growth was the sharpest since May 2011.
Scotland
50 = no change on previous month 65 60 55 50 45 40 35 30 25
Increasing rate of decline 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Increasing rate of growth

Permanent staff placements increase for second month running.

Bars: Scotland Line: UK

All UK

Higher %

Same %

Lower %

Net +/-

Index 50 = no chg

S.Adj. Index

Index 50 = no chg

S. Adj. Index

2012

May Jun Jul Aug Sep Oct

39.0 36.1 25.9 27.9 35.7 36.2

40.7 36.1 43.1 36.1 41.1 32.8

20.3 27.9 31.0 36.1 23.2 31.0

18.6 8.2 -5.2 -8.2 12.5 5.2

59.3 54.1 47.4 45.9 56.3 52.6

55.9 52.3 49.2 47.8 54.8 52.6

51.4 47.4 48.5 45.6 53.2 56.1

51.0 46.8 47.3 48.4 49.7 55.0

Temporary/Contract Staff Billings

Q. Are average weekly billings from temporary/contract staff higher, the same or lower than one month ago? Following the trend that has been reported in each month since July, temp staff billings increased further during October. This was indicated by the seasonally adjusted Temporary Staff Billings Index remaining above the 50.0 no-change mark. Moreover, the index was above the long-run series average, despite having fallen from Septembers five-month high, and suggested a strong rise overall. UK data signalled a solid increase in temp billings in October. The index has risen for four consecutive months to hit its highest since April 2011.
Scotland
50 = no change on previous month 70 65 60 55 50 45 40 35 30 25 Bars: Scotland Line: UK
Increasing rate of decline 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Increasing rate of growth

Marked growth of temp staff billings in October.

All UK

Higher %

Same %

Lower %

Net +/-

Index 50 = no chg

S.Adj. Index

Index 50 = no chg

S. Adj. Index

2012

May Jun Jul Aug Sep Oct

24.4 27.3 44.7 33.3 32.5 28.6

51.1 43.2 34.2 44.4 55.0 59.5

24.4 29.5 21.1 22.2 12.5 11.9

0.0 -2.3 23.7 11.1 20.0 16.7

50.0 48.9 61.8 55.6 60.0 58.3

55.5 47.2 53.5 57.2 60.0 56.9

49.7 50.7 51.4 51.5 55.0 56.0

47.5 47.1 48.8 51.0 52.6 54.5

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November 2012

Vacancies
Demand for Permanent Staff at recruitment/employment consultancies
The Vacancy Index, shown by the bars in the chart on the right, is derived from the sectoral indexes of the demand for permanent staff at recruitment consultancies (shown on page 4). The Permanent Staff Vacancy Index is a weighted average of the eight individual sector indexes. The line in the chart shows the comparable index for the UK as a whole. Scottish recruitment consultancies reported a larger number of permanent job vacancies in October. Demand for permanent staff has increased in each month since October 2010. The latest rise in job vacancies was strong and the greatest for five months. A higher number of available permanent jobs was also reported across the UK as a whole in the latest survey period. The average rate of growth for the UK was broadly similar to that recorded in Scotland and also the fastest in 16 months. Seven Scottish employment sectors posted a larger number of permanent job vacancies in October. The only exception was Accounts & Financial that saw broadly no change from one month previously.
50 = no change on previous month 70 65 60 55 50 45 40 35 30 25 20 Bars: Scotland Line: UK
Increasing rate of growth

Vacancy growth in the permanent job market at five-month high.

Increasing rate of decline

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Scotland

All UK

Index 50 = no chg

S.Adj. Index

Index 50 = no chg

S. Adj. Index

2012 Apr May Jun Jul Aug Sep Oct

59.0 57.0 49.5 53.1 48.1 52.9 58.5

58.9 57.5 54.9 52.1 51.7 52.6 55.0

54.3 54.8 54.7 53.8 51.0 58.1 55.5

53.9 53.3 53.0 52.8 53.0 54.3 55.1

Demand for Temporary/Contract Staff at recruitment/employment consultancies

The Vacancy Index, shown by the bars in the chart on the right, is derived from the sectoral indexes of the demand for temporary and contract staff (shown on page 5). The Temporary Staff Vacancy Index is a weighted average of the eight individual sector indexes. The line in the chart shows the comparable index for the UK overall. Demand for temporary and contract staff increased further in October, taking the current sequence of growth to three years. Moreover, the latest rise in temp vacancies was strong and to the greatest extent in three months. The number of available temp job roles across the UK as a whole also increased in the latest survey period. The rate of growth was marked, having strengthened to its fastest pace in over a-year-and-a-half. Scottish recruitment agencies reported a larger number of temp vacancies for six sectors in October. The exceptions were Hotel & Catering and Accounts & Financial, which saw the sharpest reductions in seven and 37 months respectively.
50 = no change on previous month 70 65 60 55 50 45 40 35 30 25 Bars: Scotland Line: UK
Increasing rate of decline 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Increasing rate of growth

Further rise in demand for temporary and contract staff.

Scotland

All UK

Index 50 = no chg

S.Adj. Index

Index 50 = no chg

S. Adj. Index

2012 Apr May Jun Jul Aug Sep Oct

59.2 55.4 53.4 58.4 54.9 52.7 56.7

56.5 57.7 55.9 55.0 53.9 53.1 55.0

53.1 51.8 55.1 55.0 54.9 58.2 57.6

52.1 51.4 51.8 52.3 53.9 54.7 56.3

Bank of Scotland Report on Jobs

Sectoral demand permanent

Permanent vacancies
Data below are derived from the monthly survey of recruitment consultancies in Scotland. Consultants are requested to compare the demand for staff according to sector with the situation one month ago. Data are presented in the form of Text Nov. 5, 2012 11:27:56 AM diffusion indices whereby a reading of 50 indicates no change on the previous month. Readings above 50 signal stronger demand than a month ago. Readings below 50 signal weaker demand than a month ago.
50 = no change on previous month 90 80 70
50 = no change on previous month 80 70 60 50

IT & Computing
Scot

Nursing/Medical/Care
Scot

Demand for permanent staff increases in seven sectors...

60 50 40 30 20 80 70 60 50 40 30 20

UK

40 30

UK

Executive & Professional

80 70

Hotel & Catering

Scot

UK Scot

60 50 40 30 20

UK

...with Accounts & Financial the only exception.

80 70 60 50 40 30 20

Accounting & Financial

Scot

80 70 60 50 40

Engineering & Construction

Scot

UK

30 20

UK

80 70 60 50 40 30 20

UK

Secretarial & Clerical

80 70 60 50

Blue Collar
Scot

Scot

40 30 20

UK 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Demand for permanent staff

May12 Jun Jul Aug Sep Oct IT & Computing Scot UK 66.1 62.0 58.8 61.6 57.6 59.1 56.7 56.6 55.6 55.2 54.6 55.9 Executive & Professional Scot UK 51.7 49.1 46.7 50.2 53.2 50.4 53.7 53.9 53.7 53.8 53.2 54.9 Accounts & Financial Scot UK 54.5 50.1 45.4 51.0 47.9 49.9 50.7 49.7 48.8 49.5 53.8 53.5

(Seasonally adjusted, 50 = no change on previous month)

Secretarial & Clerical Scot UK 59.1 56.5 52.2 45.3 47.9 53.4 52.5 52.2 51.5 51.6 53.2 55.3 Nursing/ Medical/Care Scot UK 52.5 48.9 54.2 60.1 57.0 52.8 54.5 55.3 57.9 60.5 62.1 58.6 Hotel & Catering Scot UK 56.4 61.4 57.7 61.3 63.3 63.1 47.3 46.9 49.0 47.6 47.2 47.7 Engineering & Construction Scot UK 57.9 54.9 53.6 53.8 57.1 60.8 57.3 56.5 56.9 57.6 59.2 58.0 Blue Collar Scot UK 45.9 42.5 44.9 44.5 48.0 52.1 48.3 47.8 48.1 47.8 50.5 52.7

The number of permanent job vacancies increased in seven sectors in October, according to Scottish recruiters. The only exception was Accounts & Financial that had broadly the same amount as in September. Demand for permanent staff grew at the Sectors ranked by demand for permanent staff in Scotland in October 2012
Sector Hotel & Catering Engineering & Construction IT & Computing Secretarial & Clerical Nursing/Medical/Care Blue Collar Executive & Professional Accounts & Financial

Rank 1 2 3 4 5 6 7 8

Index 63.1 60.8 59.1 53.4 52.8 52.1 50.4 49.9

strongest pace for Hotel & Catering, with the rate of expansion marked and little changed from the 25-month high registered previously. Marked increases were also posted in the Engineering & Construction and IT & Computing sectors. In contrast to the previous two months of reductions, the number of available permanent Secretarial & Clerical jobs increased during October. The rise was solid and greater than the long-run series average. Nursing/Medical/Care and Blue Collar permanent staff also saw greater demand for their skills over the month. That said, the increase for the former was much weaker than that recorded in September. The Executive & Professional sector meanwhile saw only a marginal rise in job vacancies in October.

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November 2012

Sectoral demand temporary

Temporary/contract vacancies
Data below are derived from the monthly survey of recruitment consultancies in Scotland. Consultants are requested to compare the demand for staff according to sector with the situation one month ago. Data are presented in the form of diffusion indices whereby a reading of 50 indicates no change on the previous month. Readings above 50 signal stronger demand than a month ago. Readings below 50 signal weaker demand than a month ago.
50 = no change on previous month 80 70 60 50 = no change on previous month 90 80

IT & Computing
Scot

Nursing/Medical/Care

70 60 50

Six sectors post an increase in temp vacancies.

50 40 30 70 60 50 40 30

UK

40 30 20

Scot

UK

Executive & Professional

Scot

80 70 60 50

Hotel & Catering

UK

UK

40 30

Scot

Fastest rate of vacancy growth for IT & Computing.

20 80 70 60 50 40 30 20 80 70 60 50 40 30 20

Accounting & Financial

Scot

80 70 60 50 40

Engineering & Construction

UK Scot

UK

30 20 80 70 60 50

Secretarial & Clerical

UK

Blue Collar
Scot

Scot

40 30 20

UK

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Demand for temporary/contract staff

May12 Jun Jul Aug Sep Oct IT & Computing Scot UK 66.5 63.3 57.8 60.4 57.5 60.8 49.0 51.6 51.4 53.4 52.1 52.4 Executive & Professional Scot UK 50.8 52.7 53.7 55.4 50.9 54.0 48.0 48.6 48.6 50.4 48.9 49.5 Accounts & Financial Scot UK 58.3 55.7 48.1 54.6 46.9 44.9 47.4 47.3 44.9 47.0 48.4 51.8

(Seasonally adjusted, 50 = no change on previous month)

Secretarial & Clerical Scot UK 60.3 56.8 59.9 56.7 53.7 57.5 51.2 51.8 51.7 53.3 52.8 56.1 Nursing/ Medical/Care Scot UK 55.4 51.3 49.6 56.3 51.2 52.0 58.4 59.4 61.0 62.1 63.1 62.3 Hotel & Catering Scot UK 49.3 54.6 53.9 52.4 50.6 47.5 49.3 47.8 47.0 48.5 49.6 52.2 Engineering & Construction Scot UK 55.2 57.8 51.4 50.6 55.9 56.7 56.9 55.6 55.7 55.0 57.8 58.9 Blue Collar Scot UK 59.7 54.8 56.2 49.9 52.6 54.6 48.0 48.4 50.5 53.0 54.9 56.8

Demand for temporary and contract staff increased in six Scottish sectors during October. IT & Computing posted the strongest month-on-month rise, with the rate of growth marked and the fastest since June. Vacancy growth also quickened in both Sectors ranked by demand for temp/contract staff in Scotland in October 2012
Sector IT & Computing Secretarial & Clerical Engineering & Construction Blue Collar Executive & Professional Nursing/Medical/Care Hotel & Catering Accounts & Financial Index 60.8 57.5 56.7 54.6 54.0 52.0 47.5 44.9

Rank 1 2 3 4 5 6 7 8

the Secretarial & Clerical and Engineering & Construction sectors. The rates of expansion were strong and at three and four-month highs respectively. Both the Blue Collar and Executive & Professional sectors posted a further rise in available temp job roles in the latest survey period. The latest increases were solid and greater than those registered one month previously. Nursing/Medical/Care meanwhile saw only a moderate rise in temp job vacancies. In contrast, lower demand for temps in the Hotel & Catering and Accounts & Financial sectors was reported by Scottish recruiters in October. Notably, the decline for the latter was marked and the sharpest for over three years.

Bank of Scotland Report on Jobs

Staff availability
Availability of Permanent Staff
Q. Is the availability of candidates for permanent vacancies better, the same or worse than one month ago? The availability of permanent staff continued to deteriorate in October, as signalled by the seasonally adjusted index remaining below the 50.0 no-change mark. Exactly 35% of surveyed firms reported a reduction compared with September, with panellists particularly mentioning lower availability for the engineering and professional trades. Overall, the index indicated a strong rate of decline in October, having fallen to its second-lowest level in almost five years. In contrast, UK data pointed to a further, albeit marginal, improvement in candidate availability during the latest survey period.
Scotland
50 = no change on previous month 90 85 80 75 70 65 60 55 50 45 40 35 30
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Deteriorating availability Improving availability

Permanent candidate availability falls further in October.

Bars: Scotland Line: UK

All UK

Higher %

Same %

Lower %

Net +/-

Index 50 = no chg

S.Adj. Index

Index 50 = no chg

S. Adj. Index

2012

May Jun Jul Aug Sep Oct

20.7 11.3 20.3 12.9 21.4 23.3

56.9 59.7 55.9 54.8 50.0 41.7

22.4 29.0 23.7 32.3 28.6 35.0

-1.7 -17.7 -3.4 -19.4 -7.1 -11.7

49.1 41.1 48.3 40.3 46.4 44.2

49.1 45.2 48.3 42.9 47.9 44.2

49.4 50.0 53.2 48.9 51.4 51.0

51.3 52.5 54.6 52.5 52.0 51.3

Availability of Temporary/Contract Staff

Q. Is the availability of candidates for temporary vacancies better, the same or worse than one month ago? The availability of temporary staff in Scotland deteriorated for the fourth consecutive month in October. Approximately 32% of panellists reported a reduction (while exactly 25% saw an increase), with a number of respondents commenting on lower availability in the engineering trades. Overall, the rate of decline was solid, having quickened over the month. Temp availability meanwhile continued to improve across the UK as a whole. That said, the latest rise was only marginal and the weakest in the current 55-month sequence of increase.
Scotland
50 = no change on previous month 90 85 80 75 70 65 60 55 50 45 40 35 30
Deteriorating availability 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Improving availability

Temp availability deteriorates for fourth consecutive month.

Bars: Scotland Line: UK

All UK

Higher %

Same %

Lower %

Net +/-

Index 50 = no chg

S.Adj. Index

Index 50 = no chg

S. Adj. Index

2012

May Jun Jul Aug Sep Oct

27.9 22.7 13.2 10.9 16.7 25.0

58.1 59.1 63.2 63.0 59.5 43.2

14.0 18.2 23.7 26.1 23.8 31.8

14.0 4.5 -10.5 -15.2 -7.1 -6.8

57.0 52.3 44.7 42.4 46.4 46.6

52.3 53.4 48.0 45.8 48.8 46.6

53.3 54.0 57.1 51.3 51.6 50.3

56.2 54.6 54.6 53.5 54.0 50.8

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November 2012

Pay pressures
Permanent Salaries
Q. Are average salaries for permanent staff higher, the same or lower than one month ago? Scottish recruitment firms reported higher average permanent salaries in October. An increase in remuneration rates has been recorded in two out of the past three months. That said, the rate of wage inflation was only marginal and much weaker than the longrun series average. Average salaries awarded to permanent staff across the UK as a whole also increased in October, extending the current sequence of inflation to six months. Although the latest rise in permanent salaries was the greatest for three months, it was only modest overall.
Scotland
50 = no change on previous month 70 65 60 55 50 45 40 35
Increasing rate of growth

Average permanent salaries increase in October, albeit marginally.

Bars: Scotland Line: UK

Increasing rate of decline 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

All UK

Higher %

Same %

Lower %

Net +/-

Index 50 = no chg

S.Adj. Index

Index 50 = no chg

S. Adj. Index

2012

May Jun Jul Aug Sep Oct

19.3 5.0 3.5 11.5 8.9 13.8

77.2 85.0 86.0 83.6 80.4 74.1

3.5 10.0 10.5 4.9 10.7 12.1

15.8 -5.0 -7.0 6.6 -1.8 1.7

57.9 47.5 46.5 53.3 49.1 50.9

55.5 47.9 47.0 52.4 49.1 50.9

52.7 50.2 52.5 49.5 51.3 51.2

51.5 50.3 51.4 50.5 51.0 51.4

Temporary/Contract Staff Hourly Pay Rates

Q. Are average hourly rates of pay for temporary and contract staff higher, the same or lower than one month ago? Following the trend that has been recorded in each month since July, temp hourly pay rates increased further in October. That said, the latest rise was only modest and the weakest in the sequence of growth. Approximately 12% of panellists reported an increase in temp hourly pay, while the remaining respondents reported no change from one month previously. A marginal rise in temp hourly pay rates was also recorded across the UK as a whole in October. The rate of increase was little changed from that registered in September.
Scotland
50 = no change on previous month 65
Increasing rate of growth

60

Weakest rise in temp hourly pay rates in four months.

55

50

45 Bars: Scotland Line: UK

40

35

Increasing rate of decline 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

All UK

Higher %

Same %

Lower %

Net +/-

Index 50 = no chg

S.Adj. Index

Index 50 = no chg

S. Adj. Index

2012

May Jun Jul Aug Sep Oct

9.3 8.9 5.1 15.6 12.5 12.2

81.4 84.4 94.9 77.8 85.0 87.8

9.3 6.7 0.0 6.7 2.5 0.0

0.0 2.2 5.1 8.9 10.0 12.2

50.0 51.1 52.6 54.4 55.0 56.1

50.0 49.9 52.6 54.4 55.0 51.5

50.8 48.7 49.2 49.0 50.3 54.3

50.6 49.9 49.5 49.8 50.7 50.8

Bank of Scotland Report on Jobs

UK regional summary
Region Unemployment (Sep12) 000s Rate (%)* Rank 3.0 3.2 3.9 4.3 4.7 5.1 5.5 5.6 6.0 6.2 6.9 7.7 4.8 (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) South East 137 South West 87 East of England 114 London 220 East Midlands 108 Scotland 140 Wales 80 NW & Merseyside 198 West Midlands 163 Yorks & Humberside 163 Northern Ireland 63 North East 94 United Kingdom 1567

The UK claimant count fell for the third consecutive month to its lowest level since July 2011 in September. At 1,567,300, the number of people claiming unemployment benefit fell 4,000 over the month and was 21,800 lower than one year previously. Nonetheless, the decline was not large enough to reduce the unemployment rate, which remained unchanged at 4.8%. The South East and South West posted the lowest unemployment rates at 3.0% and 3.2% respectively, while on the other end of the spectrum, the North East recorded the highest unemployment rate at 7.7%. In Scotland, the claimant count fell to its lowest level since April 2011 during September. Having dropped from 141,200 in August to 139,900, Scotland saw a reduction in both the number of men and women claiming unemployment benefit over the month. Overall, the unemployment rate remained at 5.1% for a second successive month and placed Scotland sixth in the table of UK regional labour markets (right).

Source: Department for Work & Pensions and National Statistics. * As a percentage of Claimant Count + Workforce Jobs.

Survey methodology
The Bank of Scotland Survey The Bank of Scotland survey of recruitment and employment consultancies is based on information provided by a panel of 105 consultancies operating in Scotland. Data are collected monthly and converted into a seasonally adjusted series. Markit do not revise underlying survey data after first publication, but seasonal adjustment factors may be revised from time to time as appropriate which will affect the seasonally adjusted data series. The information from the survey panel is also used in the compilation of the REC monthly survey for the UK, which appears in the monthly Report on Jobs and which uses an identical survey methodology. (The contribution of the Scotland data to the UK data is weighted to reflect Scotlands share of the total labour market.) The KPMG/REC UK Survey The KPMG/REC monthly UK recruitment survey features original research data from Markit, collected via questionnaire from a panel of UK recruitment and employment consultancies. Data for the monthly survey were first collected in October 1997 and are collected at the end of each month, with respondents asked to specify the direction of change in a number of survey variables. Index numbers Index numbers shown in the report are calculated from the percentages of respondents reporting an improvement, no change or decline. These indices vary between 0 and 100 with readings of exactly 50.0 signalling no change on the previous month. Readings above 50.0 signal an increase or improvement; readings below 50.0 signal a decline or deterioration. Reasons given by survey respondents for any changes are analysed to provide insight into the causes of movements in the indices.

Bank of Scotland, REC and Markit

Bank of Scotland Bank of Scotland is part of Lloyds Banking Group, the UK s largest retail bank and Scotlands largest financial services employer. Established in 1695, Bank of Scotland is the UKs oldest surviving clearing bank. Our goal is to be the best financial services provider in Scotland. We believe this means we must build a leadership position not on the basis of scale but on the foundations of reputation and recommendation. The Recruitment and Employment Confederation The REC is the association for the UKs 22.5 billion private recruitment and staffing industry with more than 8,000 recruitment agencies and 6,000 recruitment consultants in membership. There are more than 1 million temporary workers registered with UK agencies who are deployed in industry, commerce and the public services every day. Markit Markit is a leading, global financial information services company with over 2,300 employees. The company provides independent data, valuations and trade processing across all asset classes in order to enhance transparency, reduce risk and improve operational efficiency. Its client base includes the most significant institutional participants in the financial market place. For more information, see www.markit.com. About PMIs Purchasing Managers Index (PMI ) surveys are now available for 32 countries and also for key regions including the Eurozone. They are the most closely-watched business surveys in the world, favoured by central banks, financial markets and business decision makers for their ability to provide up-to-date, accurate and often unique monthly indicators of economic trends. For more information e-mail economics@markit.com.

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