Seasonal Slowdown Causes Recruiters To Pause

Amid signs that a summer of uncertainty is taking hold in the employment market, the executive search industry remains divided on the outlook for the top of the employment market during the second half of the year, according to the latest Recruiter Confidence Index (RCI) data released today.

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

According to Julyís survey of 168 executive recruiters, 46 percent are confident or very confident the executive employment market will improve in the next six months – down from 50 percent last month. During this period of time, recruiters are expecting a 2 percent increase in search assignments received from corporate clients.

ìEvidence that the longest recession in decades is nearing an end is encouraging,î says Mark Anderson, President and Chief Economist of ExecuNet. ìHowever, uncertainty surrounding the strength of a recovery is clearly a hurdle that will need to be overcome before hiring stages a significant rebound. In the interim, recruiters will continue to see strategic companies selectively upgrading their talent with new hires.î

Recruitersí short-term confidence in July points toward a seasonal, summer slowdown, as 20 percent report being confident or very confident the executive employment market will improve during the next three months – down from 27 percent in June.

Founded in 1988, ExecuNet is a private network for business leaders who believe that the right connections can produce extraordinary results in their careers and organizations. A recognized authority in executive recruiting and human capital, ExecuNet provides members access to confidential six-figure job opportunities, proprietary research, and pragmatic advice. For more information, visit www.execunet.com.