U.S. Online Job Demand Dips Slightly in September, According to Monster Employment Index; Findings Reflect Initial Impact of Hurricane Katrina, as Online Job Availability in West South Central Region Plunges

Business Wire, Oct 6, 2005

NEW YORK -- Online Demand in Construction Industry Extends Eleven-Month Upward Growth Trend

September 2005 Index Highlights:

--Index dips two points to 140 in September, with most U.S. regions, states and occupations showing slight declines

--Index still near all-time high and up dramatically compared to year-ago level of 114

--Construction continues rapid pace of growth, up 18 points in September and 72 points year-over-year

--Online demand for military occupations declines, ending four-month growth trend

--Manufacturing industry falls for fifth consecutive month

The Monster Employment Index dipped slightly in September, as the majority of U.S. regions, states and occupations tracked by the Index showed varying declines in online job availability. The Index eased back two points from 142 in August to 140 in September, suggesting a slight pullback just one month after jumping eight points to an all-time high. While the initial impact of Hurricane Katrina led to sharply reduced online job availability in the West South Central Region, which includes Louisiana, Arkansas and Texas, nationwide concern over the hurricanes' economic impact and rising oil prices likely contributed to a more cautious outlook among employers. Nevertheless, the Index remained well above its September 2004 level of 114.

The Index's overall results for the past 13 months are as follows:
----------------------------------------------------------------------
Sept. Aug.  Jul.  Jun.  May  Apr.  Mar. Feb. Jan. Dec. Nov. Oct. Sept.
 05    05    05    05    05   05    05   05   05   04   04   04   04
----------------------------------------------------------------------
 140   142   134   136  134   131  130  122  120  113  117  114  114
----------------------------------------------------------------------

"Despite the slight decline in online recruitment activity in September, a number of key industries continued to show growth during the month, including construction, retail trade and public administration, which all registered sharp gains," said Steve Pogorzelski, Group President, International at Monster Worldwide. "The Index's September findings clearly show the immediate impact of Hurricane Katrina on the Gulf region's labor market, and in the months ahead we should have better insight into the disaster's broader impact. Eventually, the rebuilding effort in the Gulf area should start to generate significant job-growth in the region, since past natural disasters have, over time, contributed to strong, long-term job creation."

Construction Continues to Lead Industries with Strong Growth in Online Job Demand

Online recruitment activity within the construction industry surged again in September, continuing an eleven-month growth trend. Demand for architects, engineers and project managers soared as the booming U.S. residential housing sector showed little sign of cooling and reconstruction efforts in hurricane-stricken areas intensified.

Despite the slight reduction in overall online job availability in September, a number of industries showed increased online job demand. Ten out of the 20 industries tracked by the Monster Employment Index saw greater online job availability during the month, including:

--Retail trade, which showed a particularly strong increase, as retailers are beginning to staff up for the coming holiday season;

--Public administration, which continued a three-month growth trend and registered a particularly large spike in September, most likely due to an increase in online demand for relief and aid workers in the wake of Katrina; and

--Mining, which saw significant increased demand, in the wake of rising oil prices, for trained workers in natural resource mining and drilling.

In contrast, online job demand within the manufacturing industry declined for the fifth straight month, reflecting continued weakness in the sector due to rising energy costs, strong productivity growth and international competition.

Online Demand for Military Positions Declines, Ending Four-Month Growth Trend

Eighteen of 23 occupational categories registered declines of varying degrees during the month of September, with online demand for military occupations falling for the first time after four consecutive months of growth. Online demand for education, training and library positions also declined in September after surging in August as schools wrapped up last-minute recruiting for the start of the academic year. Other occupations showing slight declines during the month included healthcare support; legal; farming, fishing, and forestry; and production.

Demand for personal care and service occupations increased in September, showing the strongest month-to-month increase. Other occupations showing increased online job availability during the month included:

--Business and financial operations, which showed continued demand for accounting and finance personnel to support expansion plans; and

--Architecture and engineering, which extended a nine-month upward trend reflecting the growing number of job opportunities for those with science, engineering and technical training.