Interest rates 'cool' job market

Scotland's labour market has been negatively affected by upward pressure from interest rates, it has been claimed.

According to reports by the Glasgow Evening Times, HBOS has released data showing that as a consequence of rising interest rates - and their subsequent impact on businesses - recruitment demand has fallen to a low not seen for three years.

"The Bank of Scotland Labour Market Reports are based on a monthly survey of over 100 recruitment and employment consultants in both London and Scotland," states HBOS.

"These reports provide up-to-date information on labour market trends, including recruitment patterns and movements in average pay levels and are seasonally adjusted."

Results for Scotland were published in HBOS' Scottish Labour Market Report, which also highlights a worsening situation for salary increases in Scotland.

Bank of Scotland was established in 1695, becoming part of HBOS in 2001.