The services and construction sectors continue to drive employment growth but most sectors expect a downturn in employment creation in the near future, according to a survey from the Economic and Social and Research Institute (ESRI).

In its employment and vacancies survey for June, the ESRI found that 21 per cent of firms were reporting vacancies.

Some 32 per cent of firms in the services sector had current vacancies in July, up from 22 per cent in June. In the construction sector, the share of firms reporting vacancies rose from 6 to 12 per cent while the vacancy rate remained stable in the industrial sector at 19 per cent.

Vacancies fell in the retail sector to just 2 per cent in July, down from 7 per cent in June.

But all sectors experienced a decline in net employment expectations, indicating that most firms expect to hire fewer staff next year.

Firms in the retail sector were more pessimistic about future employment trends than any time since last October.

Only the industrial sector reported an improvement in the jobs outlook, where the indicator rose 4 per cent on the previous month.