There was a significant decrease in the number of employment vacancies in the economy in August, according to the latest figures from Fás and the ESRI. The decline, indicating retrenchment by employers, to 12 per cent from 17 per cent, follows a jump in July and returns vacancy levels to closer to the average for this year.

Vacancy levels this year are averaging approximately 14 per cent, down four percentage points on last year's average.

The decline in the past month was driven predominantly by a decrease in reported vacancies in the construction and services sectors. Reported vacancies fell by five percentage points in the construction sector, to 5 per cent. This is the lowest vacancy rate the sector has recorded since the survey began in May 2002.

There was an eight percentage point decline in the services sector, to 17 per cent. Reported vacancies in the industry sector increased four percentage points to 17 per cent, while reported vacancies in the retail sector were unchanged at 2 per cent.

The net employment expectations indicator for all sectors fell slightly to minus 3 per cent, which indicates that the percentage of employers expecting a fall in employment levels in their firms over the coming months is three percentage points higher than that predicting an increase.

Construction sector employers' outlook on jobs has improved but, at the same time, they continued to be negative about future employment levels in the sector. The net employment expectations indicator for the sector was minus 10 per cent, and the trend has been downwards for most of this year.

The expectations of industry employers regarding future employment levels in their sector improved marginally, while retail sector employers employment outlook deteriorated further.

Service-sector employers' sentiment regarding future employment levels in their sector declined for the fourth consecutive month.