Staffing & Employment News (September newsletter)
“Executive Search Market Marks Highest Growth Since Recession”
Quarterly growth in the executive search market was at its highest in the second quarter since the low point in the recession 15 months ago, rising over 30%, according to an August report by the Association of Executive Search Consultants (AESC). Based on quarterly regional trends, from Q1 2010 to Q2 2010, North America is emerging from the recession first and is the strongest region. The AESC report shows a 42% year-on-year rise in industry-wide revenue and a 38% year-on-year increase in the number of new executive searches started globally. Executive searches within the technology industry were up 43.5% year-on-year.
The Bureau of Labor Statistics tracked an increase of 67,000 private-sector payroll employment; the recent low was hit in December 2009 and has since risen by 763,000 jobs. Employment increases are occurring in health care, mining, government, professional and business services, including temporary workers; decreases are in manufacturing. According to Econoday, August figures indicate that the economy is not going back to recession however growth is slow.
The National Federation of Independent Business (NFIB) small business optimism index fell nearly one point to 88.1 in July stating that optimism is not on a sustained recovery. Employment growth on average per company is negative 0.15; while this is weak it is an improvement from negative 0.28 in June. The NFIB did report that over the next quarter, a net two percent of owners plan to increase employment; this is up one point from June and positive for the third time in 22 months.
Initial jobless claims appear to be edging down over the past couple of weeks; the four-week average fell 2,500 to 485,500 yet is still about 25,000 higher than a month ago. A decline in continuing claims reflects both hiring but also reflects the expiration of benefits. The unemployment rate for insured employees is unchanged at 3.5 percent. The Monster Employment Index was up 12% Y/Y for the 7th month. The unemployment rate is at 9.6%, falling within the 9.5 to 9.7 range seen from May through August.