Pandemic layoffs sees rise in seeking temporary work, RBS says

The number of people looking for temporary work continues to increase due to layoffs during the coronavirus pandemic, according to an economic report.

A Royal Bank of Scotland survey of recruiters in February found the economy is continuing to recover but uncertainty is discouraging people from moving jobs and leading to wage stagnation.

The availability of temporary candidates across Scotland increased amid reports that layoffs stemming from the pandemic had led to a greater number of people looking for roles.

This is the 11th consecutive monthly rise in people looking for temporary jobs.

Hiring activity rose last month, with upturns in both permanent and temporary placements as businesses adapted to Covid-19 restrictions, the RBS Report on Jobs found.

The report found starting salaries rose at a much slower pace during February and neared stagnation.

While the demand for permanent staff increased for the first time in a year, the supply of candidates dipped with recruiters saying people were reluctant to pursue new roles due to heightened uncertainty.

Sebastian Burnside, chief economist at Royal Bank of Scotland parent NatWest Group, said: “February data provided further positive signs for the Scottish labour market, as hiring activity continued to rise despite ongoing lockdown measures.

“Moreover, the upturns in both temp billings and permanent placements gathered pace on the month.

“All in all, this is good news for job-seekers. With more roles available, we should see further increases in placements over the coming months and if the trend continues, the labour market will make good progress in its recovery.”

The data was collected from about 100 Scottish recruitment and employment consultancies between February 11 and 22.