September Sees Further Decline in UK Online Recruitment

According to the Monster Employment Index

September 2008 Index Highlights:

The Index dropped below year-earlier levels for the first time since inception following a fourth consecutive decline in UK online job availability

Sharply reduced recruiting was seen in the banking, finance and insurance sector while HR fell to a two-and-a-half year low in the Index

Moderate rises were noted in the public, defence, community; and legal sectors

For the second straight month, demand across all occupational groups declined. Craft and related workers were hit hardest

Northern Ireland saw strong regional growth in online hiring. There was also a moderate rise in the Midlands. Job demand fell in all other regions

Summary Overview

The Monster Employment Index UK fell by eight points in September to reach a level of 159. This is the fourth consecutive decrease and the first time that the Index has shown a year-on-year decline. The Index is now at its lowest level since April 2007. Hiring fell the most in the environment, architecture and urbanism; and HR sectors but significantly fewer offerings were also noted in banking, finance and insurance. In contrast, there was a moderate increase in public sector, defence and community and legal positions, suggesting government and related hiring is helping offset lessening job demand in the private sector.

The Monster Employment Index Europe is a monthly analysis of millions of online job opportunities culled from a large, representative selection of corporate career sites and job boards across the UK, including Monster.co.uk.

ìThe latest Index findings suggest that overall job losses are likely to intensify as the troubled financial and housing industries continue to drag down the wider UK economy,î, commented Hugo Sellert, Head of Economic Research, Monster Worldwide. ìHowever, while the private sector is growing ever more cautious about adding staff, once again the public sector is showing that it less affected by a struggling economy. Government recruitment is largely sticking to pre-determined programmes and is providing some stability to the job market in these shaky times.î

Demand for environment, architecture and urbanism workers plummets

Online hiring in the environment, architecture and urbanism sector fell by 39 Index points in September. Demand is now at a 12 month low, suggesting that the troubled real estate market has impacted heavily on hiring in these industries. The dip reflects decreased hiring of professionals; and technicians and associate professionals. Regionally, Wales saw the steepest decline and demand in Scotland fell for the sixth consecutive month. Year-on-year growth was 17 points, or 10%.

There was also a further significant fall in job vacancies in the HR sector in September. Hiring activity among staffing companies is easing as overall labour demand continues to drop. There was markedly lower demand among professional occupations. Regionally, offerings dipped the most in Wales. By contrast, demand in Northern Ireland rose again in September. Year-on-year, demand in the HR industry was down 62 points, or 32%, the steepest among sectors.

By contrast, there was an increase in hiring in the public, defence, community sector as government hiring increased to partly offset a continued drop in job opportunities in the private sector. This growth was led by higher demand for clerks and service workers. Regionally, Wales, the Midlands and North England showed higher job demand. The most significant decline was in Northern Ireland. Year-on-year growth was 13 points, or 13%.

Online hiring of craft and related workers declines further

Online job availability for craft and related workers dropped steeply again in September, for the fourth month in a row. This dip was largely caused by a downturn in opportunities in the construction and extraction sector. However, demand bounced back in the production, manufacturing, maintenance, repair sector, following three months of decline. The South East saw the sharpest fall, while Wales fell for the fourth consecutive month. Year-on-year, the category was down 121 points, or 41%, the most among occupational groups.

There was also a strong decrease in legislators, senior officials and managers in September for the second straight month. As in August, job availability fell most in the hospitality and tourism sector. Regionally, East Anglia saw the sharpest fall, following two months of growth, although opportunities in Northern Ireland increased. Year-on-year, the category was down 22 points, or 13%.

Sharp drops in job demand in Wales and East Anglia

Wales saw a 22 point drop in September, reversing two months of moderate growth. Major declines were seen in the banking, finance, insurance; construction and extraction; and environment, architecture and urbanism sectors. Among occupational groups, demand fell for legislators, senior officials and managers; clerks; craft and related workers; and plant and machine operators and assemblers for the fourth consecutive month. Year-on-year growth for the region was 4 points, or 2%.

Online job availability in East Anglia also dropped sharply in September, for the second month in a row. Hiring in arts, entertainment, sports, leisure dipped furthest, following two months of growth. Of the occupational groups, legislators, senior officials and managers fell most, while clerks dropped for the six successive month. Year-on-year, demand in the region dipped 35 points, or 21%, the sharpest among regions.

Contrastingly, there was a surge in job demand in Northern Ireland in September as the Index increased by 25 points to reach a new historical high. This growth was driven by major increases in the arts, entertainment, sports, leisure; education, training and library; environment, architecture and urbanism; IT; and construction and extraction sectors. Among occupational groups, legislators, senior officials and managers noted the highest rate of increase. Year-on-year growth was 34 points, or 23%, the highest among regions.