Jobs on rise in services’ sector

JOB losses in the services sector has halted for the first time in more than a year following an increase in numbers employed in September.

The NCB PMI index for the services sector shows employment growth was recorded in September the first to be recorded since June 2002.

"Although only marginal, the expansion was reported to be a reflection of increased volumes of new business, which have begun to test the capacity of some firms," survey authors NTC Research said.

They said that although expansion was muted, as productivity remained the focus of many firms struggling to protect margins, there were a number of reports to suggest the rapid growth of new business had resulted in new recruitment efforts and a marginal expansion of the workforce.

Commenting on the survey, NCB senior economist Eunan King said: "The

services PMI index in September recorded a very encouraging increase in

activity, the highest in 17 months.

"Confidence rose strongly; new business grew at a robust pace and business outstanding rose above the 50 level for the first time in nine months.

"Pricing power remains weak as input costs continue to grow but charges soften. A marginal improvement in employment was recorded."

On the jobs front, it was not all good news as the financial services' sector recorded an outright decline in staffing levels during September, although employment growth was restricted to business services firms.

Looking ahead, data for September showed a marked improvement in business expectations for future activity levels.

"The degree of positive sentiment was the strongest since June 2002, having picked up in each of the past four months," NTC said.

However, services firms continued to report strong upward pressure on their costs during September, and the rate of inflation picked up slightly compared to the previous month, the survey found.