What to Expect on The PR Job Front
by Allison May

Hundreds of PR candidates that contact me everyday ask - "Where are the PR jobs?" and "When are things going to pick back up?" Obviously, the current state of the market is less than desirable (and I'm talking the overall market, not just the PR industry). But for people in search of jobs right now, there is a personal and somewhat urgent need to understand when the market is realistically going to improve.

While no one can predict exactly when things will turn around, we can take a legitimate look at the current economy, market predictions, and the PR recruiting space to offer insights on what candidates can expect to see in the coming months.

Let's start with the bad news
Even before the tragic events of September 11, the economy was on a downward slope. In times of economic instability, companies often take dramatic steps to adjust to the declining economy.

Staggering layoff numbers have been announced in recent weeks: Boeing announced it may layoff up to 30,000 people; Merrill Lynch may cut up to 10,000 jobs worldwide; American Airlines - 20,000; Honeywell - 15,800…and the list goes on. Public relations agencies have been hit hard as well - global PR agencies have handed out pink slips to over 8,000 employees this year alone. Jack Bergen, President of the Council of Public Relations Firms, recently stated that since the beginning of 2001, the PR industry has lost 10 percent of its total workforce.

Some of the first budgets to get cut during an economic downturn are marketing, advertising and PR. This year, corporations slashed their internal budgets by 40%, with the bulk of the cut backs happening in the areas of media relations, internal communications and special events¹. In addition, external PR budgets have fallen 17%. The slashing of external budgets has directly affected the PR agency world - this year, agencies have witnessed a 29% decline in client PR spending. Not only are corporations decreasing their PR budgets, but in some cases they are eliminating their PR agency relationship altogether.

So, what's the good news?
Amidst all the bleak news, there is a light at the end of the tunnel. Many analysts are expecting the market to recover sometime early in spring or summer of 2002, based on various market drivers including the fiscal stimulus plan, continuing rate cuts by the fed, and a surprisingly healthy national banking system.

Of course, forecasting is never an exact science, but there is a strong indication that in mid 2002, the economy will be in a much better position than it is today.

Regarding the PR industry in particular, current events undoubtedly call for increasing communications counsel on a number of fronts, including crisis communications, investor relations and reputation management. For instance, as a PR professional, if you possess sound crisis communications or IR skills, now is an excellent time to market yourself as valuable asset to any corporate or agency PR team.

Longer term, the growth outlook for the PR industry still remains very strong. The U.S. Department of Labor reports that PR jobs are expected to increase faster than the average for all other occupations through 2006.

Overall, even with the growth outlook, as a candidate seeking employment right now, it is a tough job market. But a number of companies and industries are growing, and there are some tangible things you can do to increase your results.

Be smart and creative about your search
If you're interested in working on the agency side, remember that while account staff numbers are likely decreasing or at best frozen, business development initiatives are increasing at a dramatic pace.

The Council of Public Relations Firms - an association made up of 130 global PR agencies - recently conducted a benchmark survey among its member firms, and found that almost 70% of all agencies have accelerated their business development efforts in order to address the current economic uncertainties. So, if you have solid business development skills, now may be a great time to pitch that expertise to agencies that are aggressively seeking new client wins in order to increase revenue and stay alive.

Another suggestion is to take a step back and ask, "Okay, where are the PR jobs likely to be?" Based on research conducted by Thomas L. Harris/Impulse Research, the following seven industries have the largest PR budgets this year: automotive, energy, transportation, retail, telecommunications, banking and finance, and healthcare.

Things will change
Regardless of how long the turnaround takes, the good news is that the market will pick up, and the PR industry is continuing to grow and expand.

All we have to do now is hold on for the ride.

Allison May is Director of Marketing & Business Development for Workinpr.com.

¹ Thomas L. Harris/Impulse Research, 2001 Public Relations Client Survey Report