Rex Trewin, Business Development Manager MonsterTRAK

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Rex Trewin, Business Development
ManagerMonsterTRAK
Hiring Trends the State of the Labor Market

• FCPA Conference
• June 29, 2006

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Agenda

• The State of the US Job Market
• The State of the Atlanta Job Market
• Long-term Workforce Trends
• The Mindset of Todays College Graduate
• QA

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Monster Employment Index

• A comprehensive monthly analysis, conducted by
  Monster Worldwide, of American online job demand
• An online recruitment indicator that is based on
  actual behavior on corporate career sites and job
  boards
• 1,525 different sites (1,520 corporate, 5
  different job boards) included each month

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State of US Job Market

• In 2005, there were about 2.5 million net new
  jobs created
• These new jobs show a 1.8 growth in net new jobs
  in 2005
• Index surges 7 points to 164 in March

Source Monster Employment Index, March 2006
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State of the US Job Market

• Online job demand grew in the following
  industries
• Accommodation and food services
• Wholesale trade
• Construction
• Public administration
• Growth was seen in the following job categories
• Business and financial operations
• Building/grounds cleaning and maintenance
• Legal
• Computer and mathematical

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Top States

• The States with the largtest percent of
  entry-level job opportunities posted on Monster
  include
• California (15 of the total)
• Texas (9)
• New York (8)
• Florida (7)
• Pennsylvania and New Jersey (both 6)

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Top Markets

• Based on the number of job postings on Monster,
  the top cities nationwide for entry-level job
  opportunities include
• New York, NY (11)
• Los Angeles, CA (10)
• Philadelphia, PA (5)
• Houston, TX (4)
• Boston, MA Manchester, NH (3)
• Miami Ft. Lauderdale, FL (3)

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State of Atlanta Job Market

• The Monster Local Employment Index for Atlanta
  rose 2 points in March.

Source Monster Employment Index, March 2006
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State of Atlanta Job Market

• The unemployment rate increased to 5.1 in
  February, only slightly lower than a year ago

Source BLS
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State of Atlanta Job Market

• Employment has grown to over 2.9 over the
  past year significantly faster than the nation
  as a whole

Source BLS
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State of Atlanta Job Market

• The Atlanta metro area saw 41,300 new online help
  wanted ads in February
• according to The Conference Board. Adjusting for
  the size of the local workforce
• (approximately 2.6 million), online job
  availability in Atlanta is higher than the
• national average.

• Top Job Postings
• Sales
• Information Technology
• Accounting/Auditing
• Administrative and Support Services
• Engineering
• Top Job Searches
• Administrative/Support Services
• Customer Service/Call Center
• Sales
• Advertising/Marketing/ Public Relations
• Information Technology

Source BLS
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US Job Market Trends

• In response to the flourishing economy, many
  companies are expanding their businesses and
  looking to hire talented workers to fill new
  positions
• Job growth in the U.S. should continue to
  increase in 2006, resulting in tighter labor
  markets and higher payroll costs
• Businesses will not be able to rely on higher
  productivity to cover labor cost increases
• If the labor market continues to grow at a
  healthy clip, there will be further pressure for
  wage growth as a result of the tighter job market
  
• Growing wages good news for job seekers, who
  will be more eager to seek new/different
  employment opportunities
• THE BOTTOM LINE
• This creates more retention (and recruitment)
  pressures on companies, as turnover is a likely
  result from wage growthand new opportunities

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Net Additions to the Workforce Will Continue to
Drop
Source Workforce 2000 and Workforce 2020
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Upcoming Labor Shortage
Sources Hudson Institute, Educational Testing
Service, Kaplan, BLS, American Demographics
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Preparing for the Coming Labor Shortage

• Industry experts say
• Expand the civilian labor force
• Encourage/require employees to work longer
• Tap into other potential workers
• Women
• Immigrants
• Disabled workers
• Increase the utilization of
• Off shoring
• Welfare to work

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Preparing for the Coming Labor Shortage

• The Realities
• Competition for highly skilled workers will
  increase with gradual tightening of the labor
  market
• Accounting/Auditing
• Healthcare
• Sales
• Advances in technology and increasing
  globalization will continue to change the face of
  the workplace
• THE BOTTOM LINE The most successful companies
  will recruit (and retain) quality candidates
  effectively today in anticipation of a shift in
  power from the employer back to the job seeker

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• Your College Students
• the FUTURE

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The Freshman of 2005

• They don't remember when cut and paste involved
  scissors
• They never had the fun of riding in the back of a
  station wagon with six others
• Starbucks has always been around the corner
• Bill Gates has always been worth at least a
  billion dollars
• Snowboarding has always been a popular winter
  pastime
• Most do not know how to tie a tie
• They never saw Pat Sajak or Arsenio Hall host a
  late night television show
• Jimmy Carter has always been an elder statesman
• "Whatever" is not part of a question but an
  expression
• of sullen rebuke

Source Beloit College, September 2005
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College Students Today

• Personal relationships are important
• Diverse and more global in nature
• Multi-task and communicate in various ways
• Programmed with activities since toddler years
• High expectations of self and employers
• Expect instant gratification
• Work to live and expect work/life balance

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MonsterTRAKs 2006 Entry-Level Job Outlook
Results

• Interestingly, 52 of the 2006 graduates are NOT
  planning to live at home
• 44 of 2005 graduates are still living with their
  parents

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MonsterTRAKs 2006 Entry-Level Job Outlook
Results

• The fewest number of graduates are employed in or
  considering jobs in the healthcare and education
  fields
• Finance/Accounting ranks slightly higher among
  younger students
• Technology seems to be steady

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MonsterTRAKs 2006 Entry-Level Job Outlook
Results

• 82 of 2006 graduates expect to receive at least
  one job offer when they graduate
• 64 of 2006 graduates expect to receive 2 or more
  job offers when they graduate
• 78 of 2006 graduates feel prepared to enter the
  working world
• 57 of 2006 graduates had at least one internship
• 79 of 2006 graduates expect to work for 2-5
  different companies during their career
• More than half of employers surveyed expect to
  fill vacancies left by Baby Boomers with Gen Y
  employees sometime in the near future

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MonsterTRAKs 2006 Entry-Level Job Outlook
Results

• Students view work experience as most important
• Employers weigh work experience personal
  characteristics equally

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MonsterTRAKs 2006 Entry-Level Job Outlook
Results
Responses add to gt100 in select all that apply
questions.
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• Q A

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What Do the Facts Mean?

• With these recruiting challenges ahead
• Its time to implement effective strategies for
  bringing students and employers together!

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How Can You Do That?

• Seeker Market Help recruiters be more
  proactive!
• Career Centers Provide training and mentorship
  to students employers
• Help your Employer Partners to position
  themselves to hire the most talented employees in
  the marketplace
• Effective employer branding is critical
• Internships and co-op programs. Capture talent
  EARLY!
• Address communication practices
• Help students understand their target, their
  behaviors and trends
• Employers Evaluate college recruiting program
• Is your message on target?
• Are you recruiting at the right schools?
• Are you working effectively with the Career
  Center?
• Treat job candidates with respect and courtesy to
  preserve the reputation of the company
  (candidatespotential customers)