Digital services companies improve turnover and slow job creation

According to the Wassa Foundation’s latest ICT Monitor report, digital services firms’ turnover grew 10% year-on-year in the first eight months of 2024, although job creation is slowing.

Ignoring the impact of prices, real business growth 6.7% between January and August.

Revenue increased by 11% YoY in Augustrecovering from the slowdown recorded in the June report.

Perception of business development for the rest of the year, although somewhat less optimistic than in the previous issue, remains positive and is at +32.8 points (in the range from -100 to +100), above the EU record (+22.2 points). This suggests that 66.4% of companies expect to increase turnover before December.

In terms of job creation, hiring continues to increase, almost Another 3,000 partners in September (total 484,809, an increase of 26,267 over the last twelve months), although a slowdown is evident. The year-to-year hiring rate (August 2024 to August 2023) falls to 2.7%, the lowest level since March 2021. The average for the first eight months of the year is 3.8%, down two percentage points. than in 2023 (5.8%). ). Therefore, jobs continue to be created, but at a slower pace.

“This situation arises in an atmosphere of general caution.. High interest rates, geopolitical uncertainty and technological changes led by artificial intelligence have slowed the emergence of new corporations in a sector that has grown three times faster than the rest of the economy over the past decade. Despite this, digital services companies continue to be one of the main job generators, ranking fifth in importance at the national level,” the study states.

According to the Employment Climate Indicator, which compiles the views of business owners consulted by the European Commission in September 2024, there is a balance between companies that hope to increase their workforce and those that expect adjustments. However, the indicator fell from +26.2 points to +2.0, which is lower than the EU average of +11.7.

According to Antonio Rueda, director of the VASS Foundation and head of the TIC Monitor, “Company activity continues to increase, but they appear to be focused on making their operations more efficient for the rest of the year, with more moderate forecasts for job creation. However, the synchronization of billing and employment results in the billing ratio per employee increasing by 5.7% over the last twelve months. The digital services sector is clearly aiming to break the 500,000 branch barrier in 2025.