US demand for executives edges up 1% in first half of 2003

ExecuNet, a career management and recruiting resource center for executives and recruiters, today announced its Executive Talent Demand Index (ETDI) increased 1% during the first six months of 2003 when compared with the first six months of 2002. Published since 1997, the ETDI helps executives, recruiters, and corporations analyze hiring trends according to industry, function, region, and compensation.

After falling 17% in 2002, the executive employment market has reversed its course in the first half of 2003. In the first quarter, executive demand dropped just 1%, and in the second quarter, increased 2%. The market''s stabilization has been helped by strong growth in the Financial Services, Business Services, and Consumer/Industrial Manufacturing industries.

The employment market''s recovery has been slowed by uncertainty surrounding corporate accounting, the war, and business confidence, says Mark Anderson, President of ExecuNet. As these concerns subside and corporate investment returns, demand for executive talent is beginning to stage a comeback.

Executive Demand By Industry

Double-digit gains in executive demand were seen in three industries - Financial Services jumped 15%, Business Services increased 14%, and Consumer/Industrial Manufacturing climbed 10% during the first six months of this year compared to the first half of 2002.

In the Retail, Media/Creative/Publishing, and Pharmaceutical/Healthcare/Biotech industries executive demand was better than average, increasing 3%.

Demand for executives in the Natural Resource/Base Materials and High-Tech industries plummeted in the first half of the year, falling 17% and 15% respectively.

Executive Demand By Region

After dropping sharply in the wake of the September 11th terrorist attacks (down 27% in 2002), executive demand in the NY Metro region is returning, increasing 11% during the first six months of 2003. The only region with greater demand growth during this period of time is the Midwest, up 12%.

Also posting above average gains in executive demand during the first half of the year were the South/Southeast, Southwest, and West Coast regions, each increasing 5%. Demand in the Mountains states was unchanged (0%) during the first six months of 2003.

The Mid-Atlantic region experienced a 1% drop in executive demand. While demand in the New England/Northeast region plunged 21% during the first half of the year.

Executive Demand By Function

Up 23% in the first half of 2003, demand growth for MIS/IT executives led all functions. Consulting (18%) and Sales and Marketing (4%) executives also benefited from an above average increase in the number of executive-level job opportunities available during the first six months of the year. Demand for Finance executives increased 1% during this time period.

General Management executives experienced the most significant decrease in demand, dropping 14%. Human Resources and Operations Management executives also experienced a drop in demand, falling 8% and 6% respectively.

Executive Demand by Compensation

With many companies still reluctant to add to their payrolls, demand for the highest paid executives fell sharply during the first half of the year. For corporate leaders earning more than $250,00 and between $200,000 and $250,000, demand dropped 34% and 19% respectively. In the $150,000 to $199,000 salary range, demand was down 15%.

For executives earning $100,000 to $149,000, demand jumped 16%.

From our vantage point, it appears the executive employment market is poised for more measured growth in the second half of the year, says Anderson. In recent weeks, the Manufacturing, Healthcare, and Retail industries have proven to be a growing source of executive job opportunities.

Detailed ETDI findings for the first and second quarters of 2003 can be found at http://www.execunet.com/e_trends_etdi.cfm?ETDIID=0603_function.

ExecuNet, a career management and recruiting resource center for executives and recruiters, helps its members identify career opportunities and attain professional success through job listings, expert networking tactics, and career advancement strategies. Founded in 1988, ExecuNet also serves recruiters and corporations as a leading source of top-tier talent and proprietary research. For more information on ExecuNet visit