Recruiters in Scotland are faced with worsening skills shortages as job market conditions improve north of the border.

The Bank of Scotland’s monthly labour market report found that agencies placed a growing number of permanent and temporary staff in June, although the rate of increase slowed slightly compared.

The number of people placed in permanent jobs rose for the 11th consecutive month, with Edinburgh seeing the strongest increase.

Salaries and hourly pay rates shot up sharply compared to May, particularly in Edinburgh and Glasgow. In Dundee, where skills shortages are less acute, salaries only increased modestly.

Tim Crawford, group economist at the Bank of Scotland, said: “The report suggests that the recent strength in the Scottish economy is translating into jobs growth in most major business centres.”