IT contractors continue to dominate the Scottish contracting market, alongside engineering and construction contract workers. However, June’s Bank of Scotland Report on Jobs shows that contract and temp market growth in the region is slowing, with IT & computing contract vacancy growth easing down from its 22-month high in May.
“The rate of growth slowed [in June] showing a weakening in labour market conditions,” says Bank of Scotland Chief Economist Donald MacRae. “The Scottish economy is struggling to maintain growth momentum in the face of the global slowdown.”
The report also shows that, despite falling recruiter billings, the number of new contracts advertised in Scotland continues to rise across all of the eight sectors monitored, including several core contracting sectors, outperforming both the permanent sector and the UK as a whole.
Falling billings coupled with increased demand and a higher number of advertised contracts suggests that existing contractors in the Scottish labour market may not have the right skills to fulfil the contracts available.
Hardest hit has been oil and gas and energy centre Aberdeen, where recruiters reported contractor billings and contractor rates fell sharply, alongside rising contractor availability.
Demand for contractors in the disciplines of executive & professional and accounts & financial also continued to grow in June, considerably outperforming the UK as a whole, where demand for contractors and interims in these areas fell.
Although Scotland’s contract market appears to be slowing down, when compared to the UK as a whole it potentially offers greater opportunities for contractors with the right skills who are able to relocate.
And with fresh investment in new exploration and production projects in the oil and gas sector, and forthcoming tax breaks for decommissioning offshore installations, Scotland is likely to present an ongoing source of new and attractive contracts.