The employment outlook dimmed in August following strong jobs growth earlier in the year, according to the Economic and Social Research Institute's (ESRI) latest employment and vacancies survey.

Only 7 per cent of firms in the private sector reported vacancies in August, compared with 19 per cent in July. A drop in service sector recruitment was the main cause of the overall fall in vacancies, according to the survey.

Expectations for the remainder of the year also dampened in August, compared with July. The number of employers expecting employment levels to drop exceeded those expecting employment to rise. Employment in construction, a strong driver of recent employment trends, is expected to level off, while expectations in the services and retail sectors were for employment expectations to fall. In the industrial sector, where employment has declined, employment levels are expected to remain broadly the same.

The survey results suggest that vacancies for quantity surveyors, management accountants and managers were among those most difficult to fill in August.