Does Services Sector Growth = Job Creation?

Today's release of the Institute of Supply Management Services Index revealed that the services sector grew for the third straight month at the fastest pace in 4 years, indicating that expansion in the sector is underway. But does this mean that job creation is also underway?

Some say yes. Alan Gayle, the senior investment strategist at Ridgeworth Investments, claims that the ISM index, in conjunction with March's favorable employment report and a strong manufacturing report, reveals job creation fueling an expansion in the sector.

Alan Greenspan concurred with the general assessment on Sunday, stating that corporate investment and inventories are both increasing as a product of increased demand.