IT contractors and other temporary staff must be "at the heart" of future planning if the Scottish jobs market is to recover, according to the Recruitment and Employment Confederation (REC).

Recent figures indicate that unemployment in Scotland was up 16,000 on the previous quarter, the group has claimed.

With more than 30 per cent of Scottish workers employed in the public sector, it is essential that local authorities avoid "knee-jerk reactions" such as staff culls to proposed cuts in expenditure.

Lisa Boutineau, director of REC Scotland, said: "Public bodies will need to meet the challenge of delivering efficiencies whilst maintaining front line services.

"Solutions may include the use of skilled contract and interim staff to provide support and expertise when required."

Back in February, the REC launched its Make It Work campaign, which asks public bodies to embrace flexible working as part of a long term cost-saving strategy.

A flexible workforce allows institutions to cope with peaks in demand without being over-resourced, the REC claimed.