The Ashdown Group Jobs Index (AGJI) tracks the number of advertised permanent jobs at the Ashdown Group and the leading Internet job boards within the IT, Marketing, Accountancy and HR sectors. Data is compiled throughout the month and released in the first few days of the following month.

July 27th 2010:
8462
points

Change since June

Headline Figure:

All sectors are up in July with the Ashdown Group Jobs Index breaking new ground, now standing at 8462, an increase of 5.57%.

Summary - Job Market Resumes Upward Trend – No Double Dip in Sight

During July, the information technology job market grew by 8.43% compared to June. Even more impressive is the 41% growth in the number of vacancies the sector has seen in the past 12 months.

The HR sector remained fairly static, with a small 0.65% increase in the number of vacancies being advertised during July.

The marketing sector remains robust with a 2.84% increase in the number of jobs available.

For the third month in a row, the demand for accountancy staff continued to increase, this time by 2.69%.

Short-term and medium range forecast from John Lynes, Director of the Ashdown Group: 

'I am delighted to see a positive hiring response from businesses and can only assume that this activity is a reflection of strong order books.

'To see growth continue as we enter the summer holiday season is something of a surprise. I anticipate this will slow through August, although we are yet to see evidence of this at the Ashdown Group.

'The impact of the government’s austerity measures is yet to be seen in the private sector job market. We predict, however, that there will be a knock on effect to businesses that are reliant on the public sector shedding jobs as cuts are executed.

'With UK 2nd quarter economic growth data well ahead of expectations we are anticipating a similar set of results for Q3 given July’s job data. We can only hope that this will further boost business confidence and propel a full-blown recovery.'

Marketing Recruitment Market Analysis

'The marketing sector has seen a positive correction to last month’s drop in the number of advertised jobs with a 2.84% increase through July. As reported in the Bellwether report, marketing budget and advertising spending faltered in Q2, down on first quarter spend represented dramatically through the drop in hiring activity during June.

'We have witnessed a small drop in confidence, which is to be expected given the uncertainty surrounding the economy. As reported in previous Job Index statements, direct response marketing, online advertising and digital spend remain strong and we predict that this will fuel continued job growth in the sector.'

Information Technology Recruitment Market Analysis 

'As predicted when reporting last month’s figures, strong demand for IT personnel has returned with an 8.43% increase in the number of jobs advertised. We have seen a marked increase in contract vacancies and believe this has materialised partly as a result of some uncertainty about the economic outlook, but also from a short supply of software development talent for permanent positions. There has been upward pressure on permanent salaries with many software development professionals seeing an increase as demand outstrips supply.

'There has been a small but encouraging increase in the number of IT support positions being advertised.

'There is currently strong demand for IT Project Managers and Business Analysts, a strong indication of business intention.

'My prediction remains that the IT job market will be strong for the rest of the year.'

HR Recruitment Market Analysis

'A stuttering of business confidence drawn out by volumes of negative sentiment surrounding the possibility of a double dip to the economy have put the brakes on the hiring run HR departments have been experiencing since the start of the year. There has been a 0.65% increase in the number of jobs advertised within the HR sector since June, just 5% off the figures from May where the sector was at its highest point in the past 12 months.

'The summer period typically sees a slow down in hiring activity with many decision makers being away from the business. I anticipate that all sectors will see a small seasonal dip during August and resume normal levels by September. All eyes are on the economy through the summer to see how it reacts as growing pressure to cut costs, coupled with a small drop in confidence takes effect.'

Accountancy Recruitment Market Analysis

'The accountancy jobs sector has emerged as the most consistent performer with steady growth over the past 3 months totalling 11.5% since the beginning of May.

'Continued growth in demand within the accountancy sector has come as a surprise, albeit a pleasant one. Throughout the past year, the accounts department has seen the smallest fluctuations and the least amount of swerving change. To see a consistent upswing in demand is a very positive sign.

'There are a number of possible explanations for this. One theory is that an increase in the volume of business transactions is fuelling organic growth. Another feasible reason is that businesses, concerned that they are entering a quieter period, require better visibility of financial data to assist in business decisions. A third possibility is that workers in the financial sector have grown in confidence and are creating churn by progressing their careers and leaving openings when they leave a company. It is likely that the growth we are witnessing is a combination of all of these factors.'

Conclusion: 

'I am very pleased and somewhat surprised to see so many positive signs in the job market, especially given the volume of negative sentiment surrounding the government cuts in public spending. We appear to be witnessing a resurgence in the stock exchange, coupled with the better than expected data produced by the Office for National Statistics (ONS) against Q2 growth figures, both encouraging signs for the future. The job market has reflected this positive data and I am hopeful that this will continue. Of mild concern is the drop off in marketing spend during Q2 and I hope this does not reflect a deeper rooted drop in business confidence.

'The job market is showing amazing resilience and stability. The Ashdown Group has just witnessed the strongest period since 2008, maintaining a strong position through a seasonally quiet period; we expect to continue this momentum for the remainder of the year.'