Index points to manufacturing recovery

Irish companies will continue to recruit at record levels despite a slight slowdown in July, according to the compilers of the latest jobs index.

Data compiled by Bank of Ireland Business Banking show the number of advertised situations vacant in July was four per cent down on the same period last year. However, the figure for the first seven months of the year, 126,000, is still 1 per cent ahead of the year ago figure.

"The overall figure is still slightly ahead of the same period last year and is expected to rise further in the second half of the year," the authors said.

The manufacturing sector, which has struggled in the recent past, was one of the strongest performers last month, with a 47 per cent rise in the number of posts advertised in the national daily and Sunday newspapers compared to the same month last year.

"The significant increase in manufacturing recruitment in July is noteworthy," said Michael Crowley, senior economist at Bank of Ireland Global Markets. "It is consistent with other evidence pointing to a turnaround in the fortunes of this sector after a difficult period recently."

Public sector recruitment also rose sharply, despite efforts to contain numbers. July saw a 23 per cent year-on-year increase in the number of education posts on offer - the first time in four months that the sector has recorded an increase.

Opportunities were also available in the healthcare sector, with the number of positions advertised 15 per cent ahead of the same month in 2004. The leisure sector was another in positive territory, with 5 per cent more jobs advertised.

However, there was a notable decline in the construction sector, which has been one of the major employers in recent times. It recorded the most significant year-on-year fall, down 25 per cent.

And the retail sector, which has put in a strong performance in recent months, was down 20 per cent, its first decrease in 11 months.

Other areas to lose ground on the 12-month comparison were the financial (-10 per cent), professional (-9 per cent) and information technology (-5 per cent) sectors.

"Employment in the first three months of 2005 rose by almost 4 per cent on the corresponding period in 2004, according to the official data published by the CSO. The job index suggests that employment growth has remained strong since, with recruitment advertising over the period April to July up almost 4 per cent on the same four months last year," said Mr Crowley.