CareerJunction has launched the CareerJunction Index (CJI), the first of its kind in South Africa, measuring the trend between supply and demand of the online labour market, where the supply represents the pool of active career seekers and the demand represents the advertised jobs.
The CJI has been developed due to a lack of updated and accurate online labour market information in South Africa.
"The CJI is a credible tool that employers and Recruiters can use for recruitment purposes. It serves as a guideline and aims to provide possible solutions to assist with recruitment by identifying key factors that make the recruitment process difficult in South Africa", says Kris Jarzebowski, CareerJunction CEO.
The CJI data is sourced from the CareerJunction website where more than 1 000 recruiters (both agencies and corporates); advertise more than 45 000 jobs per month to more than 1-million registered career seekers.
The CJI provides insights into online labour market dynamics including; the current online labour market trends, rising and shrinking industries, identifying skills shortages and identifying strategies to alleviate the effect of a decreasing supply of candidates.
The data from the CJI is based on a 6 month period, where the second three months are compared to the first three months.
There are three potential scenarios that can result from the index:
* The CJI is greater than 100 points – this indicates a trend that there is a decreasing amount of career seekers per job ad, which means that recruitment may become more difficult and job hunting may become less competitive over time.
* The CJI is equal to 100 points – this indicates that there are no changes to the career seekers per job ad ratio.
* The CJI is less than 100 points – this indicates a trend that there is an increasing number of career seekers per job ad, which means that recruitment may become easier and job hunting may become more competitive over time.
The current CJI is at an overall of 96,34 points, which is for the period of March 2008 to May 2008. This CJI score indicates a slight decline in demand and an increase in supply, illustrating that it is easier to recruit candidates as there are increasing numbers of career seekers (supply) per the available jobs (demand).
The online labour market dynamics indicate that IT and finance are the two most difficult industries to recruit in. On average, there are fewer than five career seekers (supply) per available positions.
Although the finance and IT industries have the largest available workforce in the online labour market, the demand for candidates in these two industries is greater than the supply. However, both these industries have index scores lower than 100, indicating a trend that there is an increasing supply which means that recruitment may become easier over time if this trend continues.
The education industry is fast shrinking as there is greater supply than the current demand; this indicates a good opportunity for recruiters who are looking for candidates in the education sector as there is a great supply of online labour available.
The engineering, design and legal industries are the fastest growing industries in terms of demand; however recruiting for these industries is not always easy as there is not always enough supply to fill up the demand.
Economic, social and political factors have an influence on the outcome of the demand and supply in certain industries. An illustration of this is the travel & tourism and hospitality industries, which experienced a decline in demand which may have been influenced by the xenophobic attacks South Africa experienced in the reported period.
Another example of this is the property sector shrinking in terms of demand, which may be as a result of rising interest rates.