Following two years of declines in its employment rate, France has witnessed growth in the number of private sector jobs in the country.

This is according to data from analyst Markit and the Compagnie des Dirigeants et Acheteurs de France (CDAF), which revealed the increase was led by the services industry and prompted companies to hire new staff, Reuters reports.

During the period in question, the French purchasing managers' index climbed at its fastest pace in 45 months, although there was a dip in manufacturing.

It expanded from 59.2 in April to 60.5 this month, with any figure above 50 indicative of growth.

Markit economist Jack Kennedy told the news source: "The sharp acceleration in services activity growth is encouraging after signs of a cooling off during Q1, with expansion becoming more broad-based, having been largely manufacturing-led until now."

In March, Pole Emploi predicted a drop in the French jobless rate towards the end of 2011, as the number of people seeking work in the country is expected to slow this year.

Posted by Alex Donnell