Recruiter Confidence Index Shows More Uncertainties Ahead
The most recent US Jobs Report was a very good one, indicating over 200K+ jobs were added to the economy in October. This job creation was a surprise to economists, as they were only expecting a little over 100,000 jobs to be added. The day before, the US government indicated that in the third quarter US GDP grew at 2.8 percent, again above economists' expectations.
What does it mean to executives in a job search or leaders looking to add to their teams?
It means that despite the positive jobs number, all the stars have not aligned as yet for faster growth, though we are hopeful. Our Recruiter Confidence Index still labors at under 40 percent, as recruiters see much more uncertainty from government over the next few month. Our Job Creation Index at the executive level still maintains no dramatic change in hiring expectations for executives over the next six months. Recruiters continue to see that only 1 in 5 companies will add executive positions in the next six months.
So even with the positive news from the Jobs Report, we still believe that we are not at the inflection growth point, but remain hopeful. The best confirming indicator will be stories that senior level executives are starting to leave their jobs to move to new firms, which propels openings for additional hiring. Currently, this trend has not been robust, and we continue to see uncertainties ahead.
Introduced in 2003, ExecuNet's Recruiter Confidence Index is based on a monthly survey of executive search firms and is a nationally recognized measure of the trend in executive hiring and is typically seen as a leading indicator for the economy. It is used by Wall Street financial analysts to value publicly traded staffing companies.