Q3 2004 State of the Industry Report
Worldwide Executive Search Market Stable Overall in Q3 2004
Executive Searches in North America Decline 22% During Campaign Season; Searches in Europe Up 15% from Q2 to Q3
According to the latest State of the Executive Search Industry report from the Association of Executive Search Consultants (AESC), overall global executive search industry revenues dropped 3.3 percent from Q2 to Q3 2004, yet Q3 revenues represent a 9.7 percent increase over Q1 revenues. Average Revenue per Consultant declined by 1.1 percent from Q2 to Q3, but remains at a three-year high after the 13.1 percent increase from Q1 to Q2.
The report, which analyzes the activity of over 1,200 executive search consultants, also revealed that the number of executive searches commenced in the United States declined by 22 percent from Q2 2004 to Q3 - the height of the U.S. presidential campaign season. Overall the number of executive searches worldwide fell by 4.6 percent from Q2 to Q3 2004. Executive searches begun in Europe increased 15 percent over that same time period.
"A combination of the traditionally slow summer months plus the uncertainty associated with the U.S. Presidential election contributed to the decline in North American searches," said Peter Felix, President of the AESC. "However, overall these statistics show continued underlying strength in demand for executive talent. With election behind us we can expect to see North American search activity rise and 2004 finish strong in Q4. It is encouraging that demand for executive search services is increasing around the world and that the high growth economies such as India and China are utilizing executive search to find and employ the most productive talent in vital roles."
The AESC report also revealed significant changes in executive searches commenced in these two industries:
- Professional Services +20%
- Life Sciences and Health Care -9%
The data was collected from October 20 - 31, 2004, from a sample of AESC member firms representing the activity of some 1,200 executive search consultants located in 215 offices in 42 countries worldwide. AESC access to job search data positions this report as a leading indicator of the future worldwide job market and a barometer of hiring trends in key market sectors.