THE Scottish jobs market continued to show its strength last month, but faster growth was stymied by skills shortages, according to the latest Bank of Scotland Labour Market Report.

All four of Scotland's main cities recorded growth of staff appointments, but Dundee registered the strongest growth of both permanent placements and temporary billings.

The survey also noted that the unemployment rate north of the borderwas unchanged at 3.3per cent of the working population in June, ranking Scotland seventh out of the 12 UK regional labour markets.

A lack of qualified candidates for some jobs restricted the growth rate of staff placements in many places, the survey revealed. Aberdeen recorded skill shortages for both permanent and temporary staff.

The bank's Labour Market Barometer - a composite indicator devised from the four key measures of demand for staff, appointments, availability for work, and pay in the permanent and temporary markets - was unchanged from June's 62.4, a level "indicative of a strong rate of growth in the Scottish jobs market and above the equivalent barometer for the wider UK economy".

Edinburgh posted the strongest rise in permanent salaries, the survey showed.

Tim Crawford, group economist at Bank of Scotland, said: "The Scottish labour market has retained the strength seen in the first half of 2006 with job placements and also job vacancies rising in July.

"However, temp staff billings grew more quickly than permanent placements over the month, as growing skill shortages among permanent candidates saw some firms take on short-term staff to fill vacancies.

"Wages continued to rise in July as employers rewarded qualified candidates."

Meanwhile, demand rose for all broad categories of permanent and temporary staff in July in Scotland, with IT and computing recording the most robust growth.

Engineering and construction employees were the second-most sought after group in Scotland, followed by hotel and catering.

The survey also noted that Scotland recorded a rise in the number of people registered as unemployed and looking for work in June. Official data showed the claimant count was 89,000 in June, up 400 on May.