Monster Employment Index Declines Sharply in July, Reflecting Seasonal, Summer Slowdown in Online Recruitment
NEW YORK--(BUSINESS WIRE)--Aug. 3, 2006--Monster Employment Index:Fewer Opportunities in Transportation and Warehousing, Likely Due to Soaring Fuel Costs Reduced Online Job Availability for Management Occupations Helps Drives Index Lower Eight of Nine U.S. Census Bureau Regions See Lower Online Job Demand July 2006 Index Highlights: -- Index drops six points to 165 in July, showing similar seasonal retraction observed in July 2005 and July 2004 -- Online opportunities in transportation and warehousing fall amid higher fuel prices -- Findings show lower demand for executives, managers and consultants following strong surge in June -- Military-related and protective service occupations register second consecutive month of upward growth -- Online job availability for healthcare practitioners and technical occupations sees biggest surge in two years as demand for registered and licensed practical nurses mounts
Following two months of strong growth, the Monster Employment Index declined sharply in July, falling six points to a level of 165 and reflecting a seasonal slowdown in online recruitment activity typically seen in the middle of summer. The pull-back last month is similar to dips in the Index registered in July 2005 and July 2004. Nevertheless, after a mostly upward growth trend through the first six months of 2006, the Index remains 31 points (23 percent) higher year over year.
Lower demand for workers in the transportation and warehousing industry, as well as management occupations, was the main driver behind the Index's decline. In contrast, online recruitment for protective service and military-related occupations, as well as healthcare practitioners and healthcare support workers, showed strong to moderate growth in July.
The Index's overall results for the past 13 months are as follows:Jul. Jun. May Apr. Mar. Feb. Jan. Dec. Nov. Oct. Sept. Aug. Jul. 06 06 06 06 06 06 06 05 05 05 05 05 05 ------------------------------------------------------------------ 165 171 167 163 164 157 151 145 149 143 140 142 134 ------------------------------------------------------------------
"The July 2006 findings of the Monster Employment Index show a significant reduction in online recruitment activity last month, following two months of upward trending. Moreover, last month's decline, while slightly sharper than previous years, is similar to past summer seasonality recorded in July of 2004 and 2005," said Steve Pogorzelski, Group President, International at Monster Worldwide. "With the U.S. Bureau of Labor Statistics reporting more moderate job creation over the past two months and the U.S. GDP growth rate slowing to 2.5 percent in the second quarter, the Index findings are consistent with these and other economic indicators suggesting that U.S. business expansion is shifting to a more moderate level of growth at the outset of the third quarter."
Demand for Workers in Agriculture; Transportation and Warehousing Plunges, While Construction Industry Sees Continued Softness
During July, 10 of the 20 industry categories tracked by the Index showed declines of varying degrees, led by sharply lower demand for workers in agriculture, forestry, fishing and hunting, which registered the steepest drop, falling 13 points due to a seasonal lull in hiring. Opportunities in the transportation and warehousing industry also fell, losing 10 points, likely due in part to soaring fuel costs and concerns over geopolitical turmoil in the Middle East. The construction industry also dipped in July, continuing a three-month downward trend amid higher interest rates and growing signs of a cooling U.S. housing market. Retail trade and real estate were also down, shedding three and four points respectively.
In contrast, demand for workers in the finance and insurance industry rose five points, registering the strongest month-to-month rate of increase and indicating increased online job availability in the banking and investment sector. Opportunities for workers at organizations in public administration and the wholesale trade industry also increased, adding four points and three points respectively. Meanwhile, the accommodation and food industry continued a three-month growth trend, edging up two points and showing the strongest year-over-year growth among the 20 industries tracked. Utilities also gained two points, extending a three-month upward trend amid higher demand for workers to support utility grids and ensure an adequate supply of electricity and water to areas of the country experiencing much-warmer-than-normal temperatures.
Sharply Reduced Online Job Availability for Management Occupations Drives Index Lower; While Demand for Military and Protective Service Workers Surges
Fourteen of the 23 occupational categories tracked by the Index showed declines of varying degrees in July, with management occupations registering the steepest drop, sliding 17 points and contributing significantly to the Index's overall decline.
In contrast, demand for military specific occupations surged for the second consecutive month, jumping 25 points and registering the strongest rate of growth in July among occupations. Opportunities in protective service also increased sharply, rising 11 points and reflecting strong online recruitment efforts by the Armed Forces, the aerospace and defense industry, and public administration organizations seeking security-related workers, such as law enforcement personnel, fire fighters and airport screeners. Online job availability in the healthcare practitioners and technical category jumped nine points - the category's biggest gain in two years - while demand for healthcare support workers rose three points, reflecting nationwide demand for registered nurses and other qualified health services staff.
Eight of Nine U.S. Census Bureau Regions Show Lower Online Recruitment Activity
Online recruitment activity fell by varying degrees in eight of nine U.S. Census Bureau regions in July, with only the West North Central region, which includes Minnesota, Iowa, Kansas, Nebraska, Missouri and the Dakotas, remaining unchanged. The Mid-Atlantic region registered the most substantial dip, while Louisiana remained the fastest growing state year over year. Overall, 40 U.S. states and the District of Columbia showed varying declines in online job availability in July.
To obtain a full copy of the Monster Employment Index report for July 2006, including all charts and tables, please visit http://www.monsterworldwide.com/Press_Room/MEI.html. Data for the month of August 2006 will be released on September 7, 2006.
About the Monster Employment Index
Launched in April 2004 with data collected since October 2003, the Monster Employment Index is a broad and comprehensive monthly analysis of U.S. online job demand conducted by Monster Worldwide, Inc. (NASDAQ: MNST), the parent company of the leading global online careers and recruitment resource, Monster(R). Based on a real-time review of millions of employer job opportunities culled from more than 1,500 Web sites, including a variety of corporate career sites, job boards and Monster, the Monster Employment Index presents a snapshot of employer online recruitment activity nationwide. All of the data and findings in the Monster Employment Index have been validated for their accuracy through independent, third party auditing conducted on a monthly basis by ARC Research. The audit validates the accuracy of the online job recruitment activity measured within a margin of error of +/- 1.05%.
About Monster Worldwide
Founded in 1967, Monster Worldwide, Inc. is the parent company of Monster(R), the leading global online careers and recruitment resource. The company also owns TMP Worldwide, one of the largest Recruitment Advertising agencies in North America. Headquartered in New York with approximately 4,800 employees in 25 countries, Monster Worldwide (NASDAQ: MNST) is a member of the S&P 500 Index and the NASDAQ 100. More information about Monster Worldwide is available at www.monsterworldwide.com.
Monster(R) is the leading global online careers and recruitment resource. A division of Monster Worldwide, Monster works for everyone by connecting quality job seekers at all levels with leading employers across all industries. Founded in 1994 and headquartered in Maynard, Mass., Monster has 26 local language and content sites in 24 countries worldwide. More information is available at www.monster.com or by calling 1-800-MONSTER. To learn more about Monster's industry-leading employer products and services, please visit http://info.monster.com.
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