By: E&P Staff Online recruitment advertising is slowing, according to the Monster Employment Index, which stands at 186 in August compared to the July index of 183. Year-over-year, the index rose 7.5% compared with 10.9% in July.
"The slip in August is consistent with our view that the domestic employment market continues to weaken," wrote analysts with Goldman Sachs in a report released today. "While the share shift from print to online in recruitment advertising helps mitigate the impact of a cyclical slowing on Monster's operating results, the current trends introduce a level of uncertainty to the near-term earnings outlook."
Analysts are "remaining on the sidelines," even though Monster's share price has dropped 27% year-to-date, due to worries over domestic job growth, competitive pressures, and its restructuring program.
Goldman maintains its "neutral" rating on the stock.
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