While the headline figure may have disappointed there good news buried within this morning’s AI Group performance of services index for May – employment across the services sector expanded at the fastest pace since December 2004.
Here’s a chart of the survey’s employment sub-index going back to December 2004.
Not only was the reading the highest seen in over a decade, it is also 12.5 points higher than December 2014, only six months ago.
While a great result on the surface, you do have to wonder how long employment can expand at this breakneck pace with all other components in the survey contracting.
The table below tells the story.