Jobs growth in Dublin slows but services sector activity powers ahead

Growth in the creation of new jobs in Dublin eased in the second quarter of this year, a new study from S&P has found.

The study showed growth in new jobs registering at 50.8 in the second quarter of this year, the softest rating since the first quarter of 2021, and down from the 53.9 rating in the previous quarter.

Job creation in the rest of Ireland was “steady” with the index remaining at 52.5.

A rating above 50 indicates growth in activity iwhile a rating below 50 shows a decrease in activity in a sector.

The survey also noted a “deepening downturn” in manufacturing in Dublin with the headline rate slipping to 46.5 from 49.9 in the first quarter.

S&P Global’s purchasing managers index (PMI), for Dublin City Council, is regarded as a good guide to economic health, shows the services sector registered a figure of 54.0, driving the growth in Dublin. This compared with a figure of 54.1 recorded in the first quarter. There was also a further increase in construction activity to 51.9.

The results are calculated using survey responses from about 200 businesses from the services, manufacturing and construction sector each month.

Business activity in the rest of Ireland outpaced activity in Dublin in the second quarter, after a weaker start to the year.

S&P Global Market Intelligence economics director Andrew Harker said the capital “remained in expansion mode and is on a solid footing heading into the second half of the year”.

“The main area of weakness was manufacturing which continued to scale back production, but the service sector in particular powered ahead,” he said.

“The generally positive picture in the capital was matched across the rest of Ireland, with growth outside Dublin actually outpacing that seen in the capital for the first time since the end of 2022.”