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.

January 31st 2011:
9348
points

Change since November

Headline Figure:

The Job Index has seen a rise of 7.05% in the number of advertised vacancies in January compared to November, a positive indicator of the health of the economy showing companies are still looking to hire.

Summary - Spike in Demand for Professional Staff

Due to the seasonal downturn seen in December which occurs every year, the Ashdown Group Jobs Index tracks the change in demand between November and January as this provides a clearer indication of the true state of demand.

All sectors are higher in January with the HR job market and Accountancy job market faring best of all, with growth in demand of 9% and 13.52% respectively.

Demand for IT Staff grew by 3.76% and the Marketing sector saw an increase in the number of jobs advertised of 7.87%.

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

‘We have historically used January as a barometer of hiring confidence. Many businesses’ budgets for the year are released in January and this in turn drives hiring activity. Contrary to popular belief, very few people leave their jobs during January and so the increase in demand that we have seen can be almost entirely attributed to business growth as opposed to job churn, created by someone leaving their job.

'The start of 2011 has shown remarkable promise. Each sector now stands at the highest point since the index began in June 2009. This data flies in the face of the negative press that was seen during December.

'The national statistics show a drop in employment within the UK and a rise in unemployment. The job market for professional skills within IT, HR, Marketing and Accountancy is very buoyant, so where is the shortfall? It would appear to be within the graduate job market and amongst those positions that could be deemed lower skilled.'

IT Recruitment Market Analysis

'After a strong end to the year in 2010, I am delighted to see the IT job market get off to such a good start in 2011 with a rise in demand of 3.76%, leaving the IT sector at its highest point since the index began in June 2009.

'With Tier 1 Immigration being replaced by a limited number of Exceptional Talent visas in April, serious pressure will build on the ability to supply software development skills. With many software development skills already in short supply, some businesses will have no option than to outsource to consultancies or offshore their requirements. It is my opinion that capping immigration for highly skilled migrants is a short sighted ‘vote grabbing’ decision that will have a dramatic impact on UK business competitiveness, which will drive up costs and hurt small businesses the most.

'More should be done to invest in the technologists of the future and ensure that they reside in the UK, as I believe that technology driven efficiencies are fundamental to company competitiveness. The demand for these skills already exists. Why wouldn’t a government want to receive tax revenues from high earning, specialist software professionals?

'I predict that the IT job market will see the strongest demand within our sectors in 2011. Demand will continue to grow in ‘open source’ technologies and application development within the smart phone market will become increasingly important as more transactions and purchases are executed on mobile platforms.'

Marketing Recruitment Market Analysis

‘Demand for marketing professionals has increased by 7.87%.

'Yet again – unsurprisingly, online marketing has led demand as online consumer transactions continue to grow. Online marketing and communication could now be considered an integral part of most marketing roles. Search based marketing and online communication skills are in greatest demand as businesses clamber for that top spot in search engine rankings.

'Following weak high street retail results - during the difficult trading conditions of a severe winter - the importance of online business as part of a retail sales and marketing strategy has been highlighted. Social interaction and communication with customers will continue to play an important role in the fight for market share.

'Viral ‘offer’ based promotional marketing techniques have proven highly successful over the past few years, with the Cadbury ‘dancing eyebrows’ advert approaching its 10,000,000th viewing on YouTube! The ‘bogof’ Pizza chain offers which are being delivered online and to the mobile device are also proving a big hit in our company. With consumer browsing moving to the ‘smart phone’ or tablet device, this year represents a huge opportunity for those businesses that are able to capture it.

'An increase in the reliance on online mediums has seen growth in demand for those marketing professionals with online expertise. SEO marketing knowledge is still high on the demand list and we have witnessed a maturation of this market and upwards pressure on salaries for the true consultants.’

HR Recruitment Market Analysis

‘In January 2010 we saw a spike in demand of 21% within the Human Resources department and I am glad to say that there has been another surge in demand in 2011, this time demand is up a respectable 9.0%. Our opinion is that this spike can be attributed to new budgets being released but is a positive short-term indicator that the economy is in reasonable health.

'Demand for HR staff is at its highest point since we started recording data in June 09. As in the past two years, HR departments are facing a difficult year as they attempt to balance restricted budgets with maintaining top talent. It is my opinion that careful talent management will emerge as a key factor in company success during 2011.

'The top talent within businesses that have failed in their attempts to recover from the recession will become exposed to being targeted by competitors in a stronger financial position. HR Teams will be looking to more innovative approaches in tackling this challenge.’

Accountancy Recruitment Market Analysis

‘The accountancy job market is one of the largest sectors in the UK. It is also one of the slowest to react to economic change, with changes in demand being relatively small. To see the largest change in demand (+13.52%) in January within the accountancy sector was quite a surprise. I am very pleased to see that the Accountancy and HR sectors have witnessed the largest rises in demand and see this as a strong indication of business confidence for the year ahead.'

'Demand for Accountancy personnel is at its strongest since the Ashdown Group Jobs Index started tracking data in June 2009.'

Conclusion: 

'The prospect for the UK job market within our sectors looks very positive. Demand in January is indicative of fresh budgets and we have seen the highest level of hiring since June 09, February usually sees a reasonable level of job churn created by those that set their sights on a new career at the start of the year, March typically sees budgets being used up and April sees a new set of budgetary availability from those businesses that align their year end with the fiscal year.

'We predict; the laws of ‘survival of the fittest’ will weigh heaviest on those businesses that have not managed to make a solid recovery from the hard times of the past two years, they may struggle to retain key staff in stronger economic conditions. I believe that there will be some consolidation of businesses in 2011 as weaker companies fail or are taken over and the stronger businesses come to the fore.'

About the Ashdown Group Jobs Index

The Ashdown Group is a leading specialist recruitment agency operating in the UK

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.

Analysis and commentary is provided by John Lynes, Operations Director of the Ashdown Group.

This data, comment and associated imagery is owned by the Ashdown Group. If you would like to reproduce any of the information or analysis please do so quoting us as your source and including a backlink.

Enquiries • Last Month's Data