WEALTH October 3, 2025 0 Comments

September Sparks a Surprising Surge in Services Hiring—What’s Fueling This Unexpected Comeback?

Ever notice how the services sector can sometimes feel like that unpredictable friend who vanishes for months and then suddenly shows up with a bang? Well, September turned out to be one of those months — output and fresh business surged at the quickest pace in four months, and hiring buzzed back to life. But here’s the kicker: while optimism for the coming year edged up, there’s still a lingering haze of uncertainty hanging around like a stubborn fog. Now, inflation’s raining on the parade a bit — input costs and charges jumped at their steepest in months — yet the sector’s growth picked up speed, hitting a 53.5 PMI reading, quite the upgrade from August’s 50.6. Tech, media, and telecoms are practically sprinting ahead, while transport and leisure are still dragging their feet. And if you’re wondering how all this stacks against the big players — Ireland’s services sector snuck past the Eurozone and UK but still shuffled behind the US. So, what’s really propelling this rebound amid inflation and global jitters? Let’s dive into the numbers and details that explain this curious comeback. LEARN MORE

Activity in the services sector rebounded in September as output and new business increased at their fastest rate for four months and companies renewed hiring.

The year-ahead business outlook also improved further but remained relatively subdued amid persistent uncertainty.

The AIB Ireland services PMI shows that inflationary pressures rose with input prices and charges increasing at the strongest rates in six and four months, respectively.

The index returned a reading of 53.5 in September, up from 50.6 in August, indicating an accelerated pace of growth in the sector.

Growth of business activity has been maintained every month since March 2021, but remains below the long-run series average of 55.0 since May 2000.

Three sectors registered growth of activity in September. Technology, media & telecoms (60.9) recorded by far the fastest expansion, and the strongest for two years.

Moderate rates of growth were registered in business services (52.3) and financial services (52.2), while transport, tourism & leisure (46.8) registered a seventh successive monthly decline.

“The AIB Irish Services PMI for September shows a rebound in growth in the sector, with the index rising to 53.5 from 50.6 in August,” said David McNamara, chief economist with AIB.

“This marks the fastest pace of growth in four months, driven by gains in new business activity and employment. Overall, the rate of growth in the Irish services sector outperformed the Eurozone and UK flash PMIs at 51.4 and 51.9 but remained below the US at 53.9.”

New business, which rose at its fastest rate for four months, grew across all four sectors for the first time since February.

Technology, media & Telecoms saw a rapid rise in new work, with much softer increases in the remaining sectors. International new business rose at the fastest rate since January.

Although incoming new business rose more quickly in September, the level of outstanding business was broadly stable, reflecting growing employmnt.

Overall, Irish service providers raised staffing at the fastest rate since April. All four sectors registered job creation, led by financial services and transport, tourism & leisure.

Service providers in Ireland retained optimistic projections for activity over the next 12 months. Sentiment continued to recover from April’s four-and-a-half year low, but remained below the long-run survey trend as global economic and geopolitical uncertainty persisted.

Anecdotal evidence mentioned investment in new products, new customers and a pick-up in international demand. Expectations for activity remained strongest in technology, media & telecoms and weakest in business services.

“On the inflation front, input price inflation was higher, owing to wage and energy cost pressures. The prices charged index was also higher, and above the longterm survey average,” said McNamara.

“Looking ahead, firms in the Irish services sector were increasingly optimistic on the prospects for expansion in activity levels over the coming 12 months.

“Confidence was linked to new products, customers, and a pick-up in international demand including from the US and UK.”