Salaries in Scotland have risen at the quickest pace on record as companies compete to hire the best talent amid a dwindling pool of candidates, according to research.
The Royal Bank of Scotland Report on Jobs found demand for staff remains high but there are fewer people willing to move roles.
Brexit is thought to be a factor in the reduced supply of workers while there is evidence those already in jobs are more cautious about changing because of the pandemic.
Those factors mean firms are having to increase starting salaries for permanent roles to try to attract new staff.
Separately, Unite Scotland said 1,300 First Bus Glasgow drivers would receive inflation-beating pay rises over the next two years of between 6 per cent and 21.5 per cent depending on length of service.
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It follows months of negotiations between union officials and management with the deal also including further conditions on rosters, break times and a shorter working week meaning no shifts of more than 12 hours.
There is competition for drivers as shortages, particularly among those qualified to operate heavy goods vehicles, affect many sectors of industry.
The RBS report takes in responses from recruitment agencies around the country to give a monthly indication of labour market trends. A score of more than 50 indicates an expansion of activity within a category.
The November data showed demand for staff across industries remained at a high level, which is pushing up wages at record rates. Salaries have risen steadily since last December but the reading for last month, 80.5, is the highest since the research began in 2003.
Anecdotal evidence linked that to candidate shortages with companies willing to increase salaries to attract the best talent. The rate of the decrease in the supply of permanent staff was also the quickest for the survey at 24.6.
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Demand for permanent workers, at 73.5, was just short of a peak in October. IT and computing workers remained the most sought-after in November but all eight job categories monitored showed strong rises.
The trends in temporary roles were not quite as strong as for permanent positions but were still elevated when compared with historic averages.
Hourly pay had a 67.7 reading, marking 12 consecutive monthly increases in the measure. Demand for temporary workers was strongest in the hotel and catering trade.
Sebastian Burnside, the RBS chief economist, said: “The Scottish labour market continues to run hot midway through the fourth quarter.
“Hiring activity rose markedly, amid reports of strong demand for candidates, although there were signs that candidate shortages were starting to bite in November, with the rates of increase in permanent placements and temp billings the slowest since February and April respectively.
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“Skills shortages were also reflected in a further drop in candidate availability, in particular for permanent staff where the fall was the steepest ever.
“This led to upwards pressure on pay in November, with rapid rises in pay for permanent and short-term staff.”
