Permanent and temporary employment in Scotland continued to grow, albeit at subdued rates as skill shortages persist, according to October’s Bank of Scotland Labour Market Report.

The report's labour market barometer slipped to a nine-month low of 59.3 in October. However, the index was still above the equivalent barometer for the wider UK economy and also well above the 50 point level, which signals improving labour market conditions in Scotland.

Demand increased across all industries, with engineering and construction recording the strongest growth for both permanent and temporary workers.

Tim Crawford, group economist at Bank of Scotland, says: “The Scottish labour market continues to grow at a stronger rate than the UK average but Scottish growth rates are down a little from those seen earlier in the year. One of the factors behind this has been that employers are finding it more difficult to attract the right candidates.”

The report found pay rates have risen for both permanent and temporary staff.