LATEST VACANCY SURVEY MAKES GRIM READING - The latest vacancies survey published by FÁS and the ESRI this morning shows that not only is the construction industry being hit hard in the economic slowdown but so too are the retail and services sector. Only 7% of private companies here reported that they were looking to recruit new staff in April - down from 10% in March. This time last year the figure was 15%.
One of the authors of this morning's report, John McGrath of FAS, says the news from the survey is not very good. While there is some positive feedback from the services sector in regard to employment expectations, Mr McGrath says that both the volume of vacancies in the private sector and the employment expectations of employers make fairly grim reading.
Mr McGrath says the volume of vacancies stands at just 7% in April. In the construction sector the level of vacancies has slumped to 5% - the lowest level for three years. The vacancy rate in the industrial sector is at 13% compared to 17% earlier this year. Retail has not really moved much and currently stands at about 1%. But the services sector vacancy rate has fallen to 10% from about 25% in April of last year.
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MORNING BRIEFS - Davy Stockbrokers have attempted to kiss and make up with the Irish League of Credit Unions after the fall-out from the CMS bonds row. The CMS, or 'perpetual bonds' - as they are know - have fallen in value because of the international credit crisis, but Davy has agreed to fund the purchase of another investment product for credit unions holding the bonds. It says this product will provide a return - based on today's prices - over the next ten years which will make up any shortfall caused by a drop in the value of CMS bonds. Earlier this year, Davy took legal action against the Financial Services Ombudsman after he ruled that the sale of the bonds to one credit union was unsuitable. Davy still intends to go ahead with this case.
*** Hewlett Packard has confirmed that it is in talks to buy the IT provider Electronic Data Systems. It has been reported that HP is close to finalising a deal with the company worth between $12 and $13 billion. EDS is a Texas based company - of which Hewlett Packard is among the biggest customers.
