THERE was a drop in the number of permanent placements in the Scottish jobs market amid deteriorating economic conditions, a new survey shows.

The Royal Bank of Scotland study found hiring activity across the country fell into decline during October, with permanent staff appointments and temporary posts contracting.

Permanent placements have fallen in two of the past three months, while the downturn in temporary posts was the first seen since August 2020.

The rates of contraction were "strong overall", the bank said.

The Herald recently wrote about employment issues and rising interest rates

"Candidate and skill shortages meanwhile stretched the supply of labour thin, with recruiters also noting that increased economic uncertainty had impacted candidate numbers," said Sebastian Burnside, chief economist at Royal Bank of Scotland.

"Though it does seem that market imbalances are becoming less pronounced, the effect on pay remains strong.

"The data therefore suggest that growing uncertainty about the economy and the cost of living crisis are already affecting the labour market, and could weigh further on hiring decisions for the remainder of the final quarter of 2022."