Monster Employment Index Declines

New York, NY, January 5, 2007--The Monster Employment Index declined eight points to a level of 167 in December, reflecting an anticipated year-end seasonal slowdown in U.S. online recruitment typical of the final month of the year. Following two consecutive months of growth, the index's drop last month closely mirrors similar declines in past years when employer recruitment efforts have traditionally eased amid the year-end holiday season. Since its inception in 2003, the index has dipped at least three points each year in the month of December. Nevertheless, year-over-year growth for the index now stands at 22 points, or 15 percent, demonstrating greater overall U.S. online job availability compared to 2005. During the month of December, 13 of the 20 industries and 21 of the 23 occupational categories tracked by the index registered declines of varying degrees in online job demand. The index also showed reduced online job availability across all nine U.S. Census Bureau regions. "December is historically the slowest month of the year in terms of online recruitment activity, so it's not surprising to see the index retract a bit, just as it has done over the past three years. However, the broader picture for 2006 was a mostly positive one, as overall online job opportunities continued to expand throughout the better part of the year," said Steve Pogorzelski, group president, International at Monster Worldwide. "The index's stepwise growth last year was driven largely by robust payroll growth of about 150,000 new jobs per month, a gradual tightening of the job market rendering recruitment more challenging, and continued print-to-online migration of help-wanted advertising." Online job availability in the transportation and warehousing industry registered the sharpest decline among industries, plunging 13 points following heightened job demand in the previous months as shipping and parcel companies sought to hire temporary workers in preparation for surging holiday shipping volumes. Accommodation and food services also declined for the third consecutive month, shedding 12 points and suggesting softer demand for restaurant and hospitality workers at the conclusion of the year. Eleven other industries showed lower levels of online job availability during the month. In contrast, the real estate, rental and leasing industry gained seven points, registering its first monthly increase in online job demand since June. This up-tick in activity is consistent with other recent economic data, including increased mortgage applications and further stabilization in sales of new and existing homes, providing signs that the housing market's slide over the past year may be bottoming out. Online demand for workers in public administration also rose last month, reflecting strong government hiring activity. The public administration category has registered the highest annual percentage growth among industries monitored by the index. Online opportunities for professional, scientific and technical positions edged up two points, demonstrating robust demand in the overall services sector. Twenty-one of the 23 occupational categories tracked by the index showed reduced online job availability in December, led by protective service (down 18 points) which registered the strongest rate of decline. Most blue-collar categories declined in line with seasonal expectations, but several white-collar occupations, including office and administrative support (down 12 points) and business and financial operations (down eight points), fell more than anticipated. Demand for computer and mathematical occupations plunged 15 points amid sharply reduced online job availability of IT, software development, and computer services positions. Nevertheless, the category has shown strong upward growth since the beginning of the year and is now 26 points higher than in December 2005.