The research, which is the latest Bank of Scotland Report on Jobs, found that 31 per cent of recruitment agencies reported a decline in candidates being placed in permanent positions; the average salaries for permanent workers also fell for the second month in a row.
The Bank of Scotland Report on Jobs revealed that the rate of decline was in fact the fastest for 22 months, whereas the demand for contractors has increased slightly over the past month.
According to the research, which surveyed more than 100 recruitment and employment consultancies in Scotland, the demand for temporary staff has increased within six of the eight employment sectors in Scotland. The sectors with the fastest rate of growth included secretarial, clerical, IT and computing.
Chief economist at the Bank of Scotland, Donald MacRae, said, “The Scottish labour market showed a marginal improvement in July but is losing momentum.
“The number of people appointed to permanent jobs declined for the first time this year, showing the effect of the current slowdown in the economy. However, the number of vacancies continued to increase, giving hope that the upwards trend in employment can be maintained.”