Recruiter Confidence Moves Lower As Economic Concerns Mount

Amid rising recession fears, ExecuNetís Recruiter Confidence Index (RCI), a leading indicator for the top of the employment market, declined in September as executive search firms tempered their expectations for job growth in the months ahead.

Introduced in May 2003, the Recruiter Confidence Index is based on a monthly survey of executive search firms conducted by ExecuNet (www.execunet.com), an exclusive network of business leaders. Designed to forecast job growth at the executive level, a reading above 50 indicates an increase in search assignments. Independent analysis of the RCI has confirmed it is a leading indicator for the executive employment market.

According to the September survey of 161 executive recruiters, 49% are confident or very confident the executive employment market will improve in the next six months – down from 53% in August and 64% at the end of the second quarter.

ìExecutive-level job growth has remained remarkably resilient in the face of several economic headwinds this year,î said Mark Anderson, ExecuNet President and Chief Economist. ìFor the first time since the last recession, the Recruiter Confidence Index has settled below 50% -- a sign that recruiters are seeing more potential for contraction than expansion in the market. Though we still see pockets of growth in some sectors of the economy, the search industryís outlook is becoming more bearish,î Anderson said.

Short-term confidence (over the next 3 months) also edged lower, indicating that economic uncertainty should slow executive-level job growth in the months surrounding the election. In September, 30% of recruiters were confident or very confident the executive employment market will improve in the next three months – down from 36% in August and 52% at the end of the second quarter. These levels are comparable to those at the end of the last recession in 2003-4.

ìThe market uncertainties of the last several weeks are clearly taking their toll as companies are taking a more cautious approach to hiring,î said Anderson. ìThe silver lining in the potentially dark cloud is that executive recruiters are still seeing job growth in certain sectors, including the High-Tech, Energy, and Biotech industries.î

Founded in 1988, ExecuNet is a leading business, career and recruiting network where senior level executives discuss business challenges, solutions and professional opportunities. A recognized authority in executive recruiting and human capital, ExecuNet also provides members access to confidential six-figure job opportunities, proprietary research, and pragmatic advice. For more information, visit www.execunet.com.