Services sector employment growth reaches second highest level since 1995

The rate of employment growth in the UK’s services sector has reached its second highest level in 20 years, according to January’s Markit/CIPS (Chartered Institute of Purchasing & Supply) UK services purchasing managers’ index.
Wed, 4 Feb 2015The rate of employment growth in the UK’s services sector has reached its second highest level in 20 years, according to January’s Markit/CIPS (Chartered Institute of Purchasing & Supply) UK services purchasing managers’ index.

The index reveals backlogs of work have now risen for 22 months in a row, which some purchasing managers have attributed to a lack of staff at their units.

The response for a number of firms surveyed has been to recruit additional staff. This has helped increase the rate of employment growth in the sector to the joint second-highest level since data on the sector was first collected back in 1995. Employment growth reached peak levels in June 2014.

Meanwhile, the headline Business Activity Index remains well above the 50 no-change mark, posting 57.2 in January compared to 55.8 in December.

Any reading below 50 indicates the sector is not growing.

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