Job ads index points to recovery

THE number of advertisements seeking workers for the manufacturing, construction and professional sectors showed strong growth last month, according to the latest Bank of Ireland Job Index.

However, the index, which tracks the number of jobs advertised in Irish daily and Sunday national newspapers, showed no overall increase in October. It remains largely unchanged over the same month last year, holding steady at 104 points.

The bank said the stability was due to the strong performance of the private sector, which is up 6%, but this is offset by the continuing decline in the public sector, down 24% on October of last year.

Bank of Ireland economist Dan McLaughlin said the index reflects the growing evidence that the pace of economic activity in Ireland is picking up.

“The trend in the Bank of Ireland Business Banking Job Index mirrors this change, particularly on a three-month basis, with year over year falls in recruitment advertising earlier in the year giving way to positive annual growth in recent months,” he said.

“The aggregate figures also mask a striking divergence between private sector and public sector recruitment. Jobs in education, for example, fell by an annual 39% in the three months to October, with health down 9%.

"Private sector jobs, in contrast, rose by an annual 7% in the three months to October, which is supportive of the recovery thesis. Indeed, the turnaround in manufacturing is startling, with an annual 100% rise in job adds for the sector in the three months to October.”

According to the index, the number of manufacturing jobs advertised is up 43% on the figure recorded in October 2002, while construction is up 14%, professionals are up 26% and leisure 8%, with the retail sector remaining unchanged.

But it is not all positive news, with declines in technology and financial services sector. These two sectors are down 23% and 43% respectively on last year.

And the public sector also continues to decline year-on-year, with the highest drop this month being in education, at 47%, and healthcare down 10%.

Bank of Ireland business banking director Tom Comerford said the index highlighted the importance of the traditional industries for the economy.

“We must seek to ensure that they continue to have the scope and the confidence to create further job opportunities in the period ahead, particularly given the pressures on public sector employers.

"We very much hope that the forthcoming budget will see some proactive measures to support Irish enterprise and maintain a tax and investment friendly climate that will further increase the competitiveness of Irish business.”