Government Investment in Healthcare Boosts Bank of Ireland's Job Index

- retail sector gearing up for hectic Christmas

16,018 recruitment advertisements were placed in the national Sunday and daily newspapers during the month of November, according to the Bank of Ireland Business Banking Job Index, which was published today (Sunday, 5th December 2004).

This represents a 1% increase over the same month last year and a 7% increase over the same period in 2002. In overall terms, it shows a continuation of the positive trend tracked by the Job Index over the last number of months.

The public sector is showing mixed fortunes in terms of recruitment activity. Healthcare job numbers reflect the increased government spending with recruitment up 22%. With its extra Euro1 billion allocation in this year's budget this positive trend is likely to continue. Education, on the other hand, has seen a 24% decrease on the same month last year and a 53% decline on the same month in 2002 - a strong indication of recruitment cutbacks in this sector.

In terms of sectoral movements, the retail sector has recorded a strong increase (+17%) over November 2003, evidence that it is gearing up for a busy Christmas. The largest monthly increase, compared to this time last year, was in the professional sector, which recorded a substantial increase of 32%, with the manufacturing sector recording its first increase (+8%) in five months.

The IT sector, which had shown signs of recovery, reversed its upward trend and recorded a 53% decline in job advertisements. The financial sector has dropped for the fifth consecutive month (- 43%), while the leisure (-12%) and construction (-11%) sectors also recorded decreases.
Commenting on the findings of the Job Index, Mr. Cathal Muckian, Director, Bank of Ireland Business Banking said: "Throughout 2004, the Job Index has reported a very positive trend for the labour market with all but two months experiencing a year-on-year rise in recruitment advertising. This confirms the confidence in the economy for business; we expect this trend to continue. The budget has also brought about some welcome changes with capital spending set to increase by over Euro300m, bringing total capital spending in 2005 to Euro6.3b. In addition, the extension of the capital envelope of 10 years for transport infrastructure should have positive long-term effects on Irish competitiveness".
Dr. Dan McLaughlin, Bank of Ireland Group Chief Economist said: "Business Banking's Job Index is still showing a strong upward trend, with annual growth of 6% in the three months to November. This is consistent with other data pointing to a tightening of the labour market, including further falls in the Live Register and a pick up in wage inflation in the first half of 2004. Economic growth still appears to be running at a 5%-6% pace, which should put further downward pressure on the Live Register. The demand for labour may also be given a boost by the 2005 budget, which is clearly expansionary. With current spending rising by over 10% against a 5% projected rise in tax receipts, the combined effect may add half a percent to growth next year".

For reference;
Anne Mathews
Media Relations Manager
Bank of Ireland Group
Tel: 01 6043836 / 087 2460358

Liam D'Arcy
Sectors Manager
Bank of Ireland Business Banking
Tel: 01 604 3713 / 086 8257734

Note to Editors:

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