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Monster Employment Index Dips Slightly in November, Due to Declining or Flat Online Recruitment Activity in Europe's Three Largest Economies
LONDON & NEW YORK, Dec 13, 2005 (BUSINESS WIRE) -- Monster Worldwide (Nasdaq:MNST):
-- Only the Netherlands Registers Growth in Online Job Availability, Driven by Higher Demand for Plant and Machine Operators, Legislators and Senior Officials
-- Online Recruitment Activity in Germany Declines Slightly for the First Time, Ending an Eleven-month Upward Growth Trend
-- Telecommunications Sector Sees Increased Online Demand for Workers, Especially in France and Germany, while Demand in the Automotive Sector Declines the Most in Germany
The Monster Employment Index Europe dipped slightly in November 2005, registering a one-point drop from 113 in October to 112 in November, but remaining near its all-time high. Since its inception in December 2004, the Index has maintained a generally upward growth trend, demonstrating steady growth of online job availability across the five European countries it tracks. However, the November findings showed a decrease in online labour demand following the rise registered in October. The Netherlands was the only country that registered growth, rising two points during the month and the moderate decline of the Index was due to slightly lower demand in Germany and the UK, and flat activity in France and Sweden.
"The November findings of the Index appear to be consistent with a recent survey carried out by a leading business consultancy showing that consumer confidence across Europe has been dampened due to rising oil prices, political instability and concerns over unemployment. Christmas spending on gifts is expected to dip by three per cent on average across Europe, with Germany leading the pack with a nine per cent projected drop in spending," said Peter Dolphin, CEO, Monster Worldwide Europe. "However, the outlook for future growth prospects in Europe remains fairly positive. The International Chamber of Commerce's world economic climate indicator rose to 88.7 from 81.0 for Western Europe based on positive assessments of current conditions and future prospects. The fact that the European Central Bank has raised interest rates for the first time in five years also indicates its positive outlook for European growth."
Monster Employment Index Europe results for the past twelve months are as follows:
Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan Dec 05 05 05 05 05 05 05 05 05 05 05 04 ----- ----- ----- ----- ---- ----- ----- ---- ----- ----- ----- ----- 112 113 110 109 109 108 105 104 103 100 94 94 ----- ----- ----- ----- ---- ----- ----- ---- ----- ----- ----- -----Online Job Availability Remains Flat or Declines Across Most of the Five Countries
"During November, the Index measured a slight slowdown in hiring activity across Europe, which is not surprising given that most businesses are starting to wind down on recruitment as the year draws to an end," said Kai Deininger, Head of Marketing Communications, Monster Europe. "Germany saw a drop for the first time, which points to the country's uncertainty over the new government's economic strategy. Recruitment activity in France was flat during November, following a very strong growth in October, which can be put down to seasonal hiring factors. Interestingly, the UK saw a significant rise in demand in the retail sector, suggesting a degree of renewed confidence among retailers about sales over the Christmas period."
Monster Employment Index Europe findings for the five countries from December 2004 through November 2005 are as follows:
Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan Dec Country 05 05 05 05 05 05 05 05 05 05 05 04 ----------- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- --- --- France 108 108 98 102 110 106 106 104 102 100 94 94 ----------- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- --- --- Germany 116 117 116 114 110 109 106 103 102 99 96 93 ----------- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- --- --- Netherlands 113 111 108 108 110 107 106 103 103 97 93 97 ----------- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- --- --- Sweden 99 99 98 94 98 104 105 101 103 102 91 97 ----------- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- --- --- United Kingdom 105 106 103 103 106 104 103 103 104 102 91 97 ----------- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- --- ---Index Shows Flat or Slightly Lower Online Hiring Activity Across Most of Europe, with Online Opportunities for Plant and Machine Operators Registering the Sharpest Declines
Overall online job demand in five of the nine occupational categories tracked by the Index remained flat in November, while four categories registered declines of varying degrees.
Opportunities for legislators and senior officials held mostly steady during the month, after rising to an all-time high in October. The solid rise in overall demand for legislators and senior officials in Germany and the Netherlands was offset by slight declines in France, Sweden and the UK.
Professionals, clerks, sales and shop workers and elementary workers saw no change in overall online job availability across Europe as demand remained at a fairly high level compared to the start of the year, and the UK and Sweden registered an increased number of opportunities in the category. Notably, the sharp growth in the UK was significant enough to compensate for declines registered in the other four countries.
Demand for plant and machine operators declined in November, with four of the five countries seeing fewer online opportunities in this category. Although growth in this category was significant in the Netherlands, it was not enough to offset the decline in the other four countries, especially the UK. The number of online offers for craft workers also fell during the month, largely due to a significant decline in Germany and more moderate declines in France and Sweden. A slight upturn was reported in the Netherlands and the UK.
While technicians saw a strong rate of growth in October, the category dipped slightly in November, edging down one point. The increase observed in the Netherlands and Sweden was not strong enough to compensate for lower demand in the UK, France and Germany.
Online recruitment activity for skilled agriculture and fishery workers continued a downward trend in demand, after peaking in April, May and June - the period leading up to the summer harvest season.
The telecommunications sector was one of the brightest spots in November in terms of online job demand. Opportunities for workers rose significantly in France and Germany due to companies gearing up for one of their busiest times of the year. The automotive sector saw a significant drop in online job availability in November, mainly in Germany. In contrast, the number of open positions in this sector increased slightly in Sweden and the UK.
The education sector saw demand drop significantly in France and Germany; offset by a sharp increase in the Netherlands, Sweden and the UK. Growth in the science sector was high in the Netherlands, but fell sharply in Germany.
Monster Employment Index Europe findings across occupational categories from December 2004 through November 2005 are as follows:
Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan Dec Occupation 05 05 05 05 05 05 05 05 05 05 05 04 -------------- ------------ ---- ---- ---- ---- ---- ---- ---- --- --- Legislators, senior officials and managers 107 107 101 104 104 104 104 102 103 104 93 94 -------------- ------------ ---- ---- ---- ---- ---- ---- ---- --- --- Professionals 111 111 110 109 108 106 106 103 103 100 94 94 -------------- ------------ ---- ---- ---- ---- ---- ---- ---- --- --- Technicians and associate professionals 111 112 108 107 107 107 106 104 103 100 94 94 -------------- ------------ ---- ---- ---- ---- ---- ---- ---- --- --- Clerks 113 113 109 107 106 105 105 102 104 101 94 94 -------------- ------------ ---- ---- ---- ---- ---- ---- ---- --- --- Service workers and shop and market sales workers 101 101 101 101 105 106 105 104 103 100 94 94 -------------- ------------ ---- ---- ---- ---- ---- ---- ---- --- --- Skilled agricultural and fishery workers 96 97 98 98 102 104 104 104 102 101 96 92 -------------- ------------ ---- ---- ---- ---- ---- ---- ---- --- --- Craft and related workers 119 121 121 118 114 110 107 104 102 98 94 96 -------------- ------------ ---- ---- ---- ---- ---- ---- ---- --- --- Plant and machine operators and assemblers 107 111 110 107 111 108 104 103 104 102 93 95 -------------- ------------ ---- ---- ---- ---- ---- ---- ---- --- --- Elementary occupations 110 110 110 112 112 111 107 105 101 97 95 95 -------------- ------------ ---- ---- ---- ---- ---- ---- ---- --- ---Online Job Demand in France Remains Flat in November, Following Sharp Rise in Previous Month
Online recruitment activity across France remained flat in November, following a jump of ten points in October. All of the occupational categories tracked by the Index in November either remained flat or declined slightly, with the exception of the skilled agricultural and fishery workers category. The five-point growth in this category was enough to offset the declines experienced by service and shop workers, legislators and senior officials and elementary occupations.
The only industry sector that registered a significant rise in demand in terms of volume was the telecommunications sector, where professionals were in greater demand. Moderate increases were registered in the agricultural, real estate, public services, education and environmental sectors. The level of job demand in the IT, banking, finance and insurance sectors remained unchanged after seeing substantial growth in October.
It remains to be seen if the urban riots that took place across France during November have had any major impact on the economy or on hiring. Early analysis from economists suggests that tourism could be slightly affected; however with the regeneration, repurchasing of cars and rebuilding work, the net impact on growth is likely to be minimal.
Monster Employment Index Germany Declines for the First Time, Edging Down Slightly in November
The Index for Germany dipped from 117 in October to 116 in November, registering the first ever decline since its inception. Up until November, Germany was the only country tracked by the Monster Employment Index Europe that has shown uninterrupted growth since December of last year. While overall online hiring activity edged down by one point, Germany continued to show the largest volume of online job availability among the five countries tracked by the Monster Employment Index Europe.
Eight of nine occupational categories experienced a decline or remained flat, the exception being the legislators and senior officials category, which saw online opportunities grow by three points. This was mainly driven by a significant rise in demand for sales positions and banking and insurance professionals. The largest declines in demand were for craft and trade workers, due to fewer offers in the construction, production and manufacturing sectors. In addition, online labour demand in the retail sector dropped by a significant 20 per cent, pointing to lower consumer confidence ahead of the Christmas shopping season.
Economists have recently commented that the drop in German household spending is unprecedented in Germany's history and suggested that the country is stuck in a 'consumption recession' due to the downward pressure on wages, high energy prices and high unemployment causing low consumer spending. On the plus side, the Economy and Labor Ministry said the economy is showing signs of further strengthening based on increased investments in machinery and construction.
Netherlands Demonstrates Solid Growth in Online Recruitment Activity in November
The Netherlands was the only country tracked by the Monster Employment Index Europe that registered growth in November, edging up two points to 113 in November and reaching its highest level since inception of the Index. Six of nine occupational categories showed increased online job availability in November, with plant and machine operators continuing an upward trend from the previous month and registering the greatest rate of growth in online job opportunities. Demand for legislators, senior officials and managers also continued to see growth, while the only occupational category to show a significant decline during the month was the elementary occupations category, which fell sharply by twelve points.
The Monster Employment Index Netherlands has maintained a mostly upward growth trend since its inception and is now a full 20 points higher than the level observed in January 2005. The Dutch economy is doing well with 0.9% growth observed in Q3 2005 compared to Q3 2004, according to the Central Bureau of Statistics. Increased exports, stronger investment and higher consumer confidence have likely contributed to increased job creation, and the European Committee foresees stronger economic growth for the Dutch market in the upcoming two years.
Online Recruitment Activity in Sweden Remains Flat in November, Following a Three-Month Upward Trend
Online job recruitment activity and related employment opportunities across Sweden remained unchanged in November. The Index held steady at a level of 99, remaining at its highest level since June of this year. Demand for professionals saw the sharpest month-to-month increase, while clerks and plant workers saw the steepest decline in online job availability.
Three of the nine occupational categories tracked by the Index showed increases of varying degrees in November. Industry sectors showing significant increases in online job opportunities during the past month include banking, finance, insurance and education. However, these increases were offset by sharp declines in five other categories. Demand in the construction, administration, marketing and transport sectors fell, likely due to a natural seasonal decline in hiring activity.
Although the Index for Sweden remained flat in November, the data points to continued job stability in the country, which is a positive sign in the month before the beginning of the winter holiday season. Recently, analysts at a leading investment bank reported that the labour market is improving, with total employment inching up to 4.238m in October 2005 from 4.212m at the same time last year. Additionally, Prime Minister Goran Persson recently predicted employment growth of 3.5% for 2006.
UK Registers Slight Dip in Online Recruitment Activity in November
The Monster Employment Index UK dipped one point from 106 in October to 105 in November, remaining at a strong level compared to the start of the year and indicating continued strength in online recruitment activity. Online job demand for craft workers jumped during the month, rising eight points due in large part to increase demand for installation, maintenance and repair workers as the UK awaits one of its coldest winters on record in a decade. Online job availability for service and shop workers also showed a significant increase for the second consecutive month, as retailers continue to hire extra staff to cover the busy run up to Christmas.
In contrast, demand for plant and machine operators declined sharply by 17 points in November, reaching its lowest level since May 2005. The figures support the latest data from the Confederation of British Industry (CBI), which show that the manufacturing industry has failed to show improvement as robust demand for exports has been offset by further deterioration in domestic orders.
There was a five-fold increase in demand for home workers in the sales sector, reflecting recent research reports showing that the UK is moving towards a teleworking model that is much more sympathetic to those with family responsibilities, especially over the busy Christmas period. A recent survey conducted by the Office for National Statistics highlighted that home-working is a growing trend in the country, with 3.1 million people working from home in the UK in spring 2005, compared to 2.3 million in spring 1997.
About the Monster Employment Index Europe
Launched in June 2005 with data collected since December 2004, the Monster Employment Index Europe is compiled by Monster Worldwide, parent company of leading global online careers and recruitment resource, Monster(R). The Index was established to provide European labor market watchers with a valuable monthly snapshot of online recruitment activity based on the researching of millions of employer postings across more than 1,400 Web sites. In addition to providing an analysis of European online job demand, the Index offers a sub-index by occupation, including data on nine occupational categories in five countries: France, Germany, the Netherlands, Sweden, and the United Kingdom. The Index is independently audited by ARC Research, a U.S.-based market research company, to ensure the accuracy of the data within a margin of error of +/- 1.05%. The Monster Employment Index debuted in the U.S. in April 2004.
Additional information on the Monster Employment Index Europe is available online at http://euindex.monsterworldwide.com. Visitors can subscribe to receive the European Index report, as well as any or all of the five country-specific Index reports on a monthly basis via email. Monster Employment Index Europe data for December will be released on January 10, 2006.
More information about Monster in France, Germany, the Netherlands, Sweden, and the United Kingdom can be found, respectively, at:
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 world's largest Recruitment Advertising agency networks. Headquartered in New York with approximately 4,800 employees in 26 countries, Monster Worldwide (Nasdaq:MNST) is a member of the S&P 500 Index. More information about Monster Worldwide is available at www.monsterworldwide.com.
About Monster
Monster(R)is the leading global online careers and recruitment resource. A division of Monster Worldwide, Monster was founded in 1994 and is headquartered in Maynard, Massachusetts, USA. Monster has 26 local language and content sites in 24 countries worldwide. Monster is known for connecting quality job seekers at all levels with leading employers across all industries and offers employers innovative technology and superior services that give them more control over the recruiting process. 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://recruiter.monster.com.
Special Note: Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Except for historical information contained herein, the statements made in this release constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve certain risks and uncertainties, including statements regarding Monster Worldwide, Inc.'s strategic direction, prospects and future results. Certain factors, including factors outside of Monster Worldwide's control, may cause actual results to differ materially from those contained in the forward- looking statements, including economic and other conditions in the markets in which Monster Worldwide operates, risks associated with acquisitions, competition, seasonality and the other risks discussed in Monster Worldwide's Form 10-K and other filings made with the Securities and Exchange Commission, which discussions are incorporated in this release by reference.
SOURCE: Monster Worldwide
Monster Worldwide Europe: Kai Deininger, +49 172 679 1900 kai.deininger@monster.com or United States: David Rosa, +1 212 351-7067 david.rosa@monsterworldwide.com
