Recruiting staff continued to be a problem for Scottish businesses in January with demand for staff strong, according to the latest Bank of Scotland Labour Market Report.

Demand was strongest for permanent IT and computing staff and temporary accounts and financial workers, with Glasgow recording the fastest growth of permanent staff placements in January, and Edinburgh posting the strongest rise in temporary staff billings.

Aberdeen-based recruitment consultancies continued to report the greatest skill shortages for both permanent and temporary staff.

Tim Crawford, group economist at Bank of Scotland, said: "Latest survey data show that demand for staff in Scotland remained strong at the start of 2007. Salaries rose further in January, as firms looked to attract staff in a tight labour market. Overall, the Scottish jobs market is growing at a similar rate to the UK market, while Glasgow is the best performer at a local level."