The Career Junction Index Reveals A Possible Rise Of Unemployment In The Online Labour Market

The Career Junction Index Reveals A Possible Rise Of Unemployment In The Online Labour Market Due To A Slump In Demand.

CareerJunction, an AVUSA digital company, has released its latest CareerJunction Index results. According to the latest CareerJunction Index (a quarterly analysis of the online labour market in South Africa), the online labour market has taken a significant slump over the last running quarter, contradictory to the latest quarterly Labour Force Survey published by Statistics South Africa, 2 March 2009.

When analysing the CareerJunction Index (CJI), the effects of the financial crisis made its first appearance in the online labour market in January 2009 when the CJI experienced a significant drop from 107.76 to 50.94 index points. A drop in index points generally refers to the growing gap between supply and demand trends in the online labour market, with demand experiencing a decline. The latest CJI indicates a major decline in online labour demand whilst online labour supply presents a steady growth.

Industries that have experienced a plunge include the Human Resources, Engineering and ëDistribution, Warehousing & Freightí industries; each industry experiencing a decline in demand of more than 50% since December 2008.

The Finance industry in particular experienced a remarkable decline in demand over the last six months. Since July 2008, online recruitment in this sector has improved from less than 5 potential CareerSeekers per Job Ad to more than 10 potential CareerSeekers per Job Ad in January 2009. Previously known as one of the most difficult industries to recruit for, the Finance industry now falls under the ëModerate Recruitment categoryí.

Furthermore, the global economic slowdown seems to have an effect on the Trading sector and related industries in the online labour market. CareerJunctionís latest research reveals major declines in demand for the ëFMCG, Retail & Wholesaleí, ëManufacturing, Production & Tradeí, ëSalesí and the ëMotorí industries.

ìThe steady growth in supply is creating tougher competition for CareerSeekers in the online labour market, as more skilled supply emerges to meet the demandî, says Kris Jarzebowski – CEO of CareerJunction.

The Building & Construction industry demonstrates a growth of 24.4% of online labour supply, compensating for its drop in demand of 47%. The Sales industry is displaying a similar trend with a 23% growth in demand.

Upcoming CJIs will unveil whether the current industry trends in the online labour market will persist or experience a change in the months to come and how recruitment activity will respond.

For more, see http://www.cji.co.za/exec_pdf/CJI_ExecutiveSummary_January2009.pdf.

The February Edition of the CJI Executive Summary will be available on 20 March 2009 at www.cji.co.za