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.

May 27th 2010:
8278
points

Change since April

Headline Figure:

The jobs index has seen continued growth with an increase of 4.35% in the number of jobs advertised in May. The Ashdown Group Jobs Index now stands at a high of 8278.

Summary - All Sectors Are Up:

The number of jobs being advertised is higher now than any period since June 09.

The most significant growth during May was in human resources, showing an increase in the number of jobs advertised of 10.06% against the previous month. If we use the health of the HR department as a barometer of employment, the short term future looks in good shape.

The number of marketing jobs being advertised increased by 6.89% against April’s figures.

Accountancy vacancies grew by 4.07% during May, the second largest rise in the sector since last summer.

The number of information technology jobs grew by 2.97%. There are more IT vacancies being advertised now than at any time since June 09.

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

'Once again, I am surprised that the volume of negative economic coverage has not affected hiring decisions. I can only conclude that UK businesses are seeing strong demand for their goods and services and that this is fuelling the job market.

'The coalition government is describing the period where they deliver reactionary measures to correct our economic situation as an “age of austerity”, with spending cuts and a recruitment freeze. It is only a matter of time before these changes have a direct impact on jobs.

'This impact will be wide ranging and will not just affect the public sector, but also private sector businesses that rely heavily on public sector contracts.

'With the holiday season just weeks away, it seems likely that a reduction in demand will coincide with a seasonal downturn. I only hope that growth in the private sector can absorb some of the drop in public sector demand for staff.'

HR Recruitment Market Analysis

'Based on the past two months’ activity (growth of 14.7% in advertised HR jobs), the future for employment looks strong. I predict that the number of HR openings in June and July will be somewhat lower than current figures, with a seasonal lull and the effect of government measures yet to be seen.'

Marketing Recruitment Market Analysis

'The marketing sector has remained buoyant with continued growth in hiring activity. There were more jobs advertised in marketing during May 2010 than at any time since June 09. I predict that marketing skills will remain in demand and this will protect the sector to some extent.'

IT Recruitment Market Analysis

'The IT job market remains strong having grown by 12% since the start of the year and it is now at its strongest point for the past 12 months. Government spending cuts and a public sector recruitment freeze will have an effect on the IT job market, but we foresee any surfeit of skills from the public sector being consumed by the private sector, especially for ‘in demand’ development skill sets'

Accountancy Recruitment Market Analysis

'The accountancy job market has bounced from the previous two months of drops, rising this time by 4.07%. There are the same number of jobs being advertised in the accountancy sector as there were in June last year. There has not been the same growth as we have seen in other sectors. We do not anticipate any significant increase or decrease in demand over the coming months.'

Conclusion:

'The data from May was gathered before the recent government announcements and past history is not necessarily an indication of the future outlook. It is yet to be seen what the effect of government cuts will be.

'With the number of jobs advertised in Human Resources growing faster than the other sectors, one could be forgiven for thinking that this hiring activity is indicative of a more confident economy.

'The private sector appears to be performing well with much hiring activity and decent annual reports among many of the FTSE listed companies. The stock market paints a different picture, with the FTSE 100 dropping 15% since mid April. This may prove to be a better reflection of the immediate economic outlook and in turn the future for jobs.

'The job market is strong now but the future is very uncertain. I don’t believe we will see a true picture until the end of the summer.'