Research and Development continues its strong growth rates in the second quarter, jumping 55 percent from Q1 levels. Regionally, the America’s showed the biggest change in the index this quarter,outpacing Asia Pacific and EMEA with a 27.6 percent increase in total job opportunities. In real terms, over 2,000 additional jobs were posted from index companies in the America’s alone. The Outsourcing and Services sector posted a 42 percent increase in total job opportunities, standing out as the biggest gainer in new jobs by percentage during the quarter. The sector also had a stellar quarter for new investment from the Private Equity side as well, showing optimism on several fronts in this area.
What‘s Not ?
The Asia Pacific region slowed down in Q2 and was the only area not to post double digit increases in total hiring opportunities. While still increasing, the level dropped to 2.0% growth in the quarter from all sectors reported. Could the demand for Regulatory, Quality and Clinical talent finally be balancing? After four straight quarters of growth in the index numbers for this function, Q2 saw a 11% decrease in demand for talent in this area, indicating perhaps past recruiting efforts have succeeded and now companies are adequately staffed up to deal with the new requirements in this area.
As highlighted, the America’s showed a big boost in hiring across sectors this quarter, jumping 27.6 percent overall with EMEA showing 11 percent growth and Asia Pacific abruptly slowing to just 2 percent increase this quarter. In Asia Pacific, the exception to the rule in hiring was Philips and GE Healthcare, who were both in a highly active hiring mode in the region.
All three sectors showed growth but Outsourcing and Services was the clear story this quarter. Major R&D restructuring announcements by large pharma companies including Pfizer point toward even heavier reliance on external partners for development and clinical trial services. Pulling the index numbers up was Parexel, who had a near tripling of job opportunities globally. It was Sales and Marketing as well as IT/Finance and General areas being filled in the quarter for the Outsourcing and Services sector. Life Science / Pharma showed a healthy 17 percent increase overall in Q2 hiring levels. The leaders in the Pharma space were Novartis and Roche, tallying top overall numbers for new hiring. Medical Devices posted an 11 percent growth rate in new opportunities in the quarter, being led by GE Medical, Philips and Medtronic’s global hiring efforts. Just looking at index companies, 1800 new jobs were posted during the period. Pharma showed a moderate 2.3 percent increase in the quarter and seems to be basically flat, with the except on again of increased demand in this area for Regulatory, Quality and Clinical talent. The CRO sector dropped 7.8 percent during the quarter after a spike in new hiring in Q4 2010.
About the Global Life Science Hiring Index
The index utilizes a proprietary algorithm that looks at confidential hiring within selected benchmark companies in three distinct segments: 1) Life Sciences / Pharmaceutical 2) Medical Devices and Supply 3) Outsourcing and Services. The indexed participants represent 30 global organizations widely considered leaders in their respective fields. The companies in the index generate over $634 billion in revenues and employ over 1,300,000 people globally. The ZRG Partners research team conducts extensive direct market research in developing the data that drives the index.
MEDICA.de; Source: ZRG Partners