Fear of economy, job loss has LinkedIn buzzing with activity

Via ARS Technica

By Jacqui Cheng | Published: October 28, 2008 – 09:00AM CT

“Professional” social networks—that is, the ones you’re supposed to be using for reasons other than hooking up or playing Scrabble with old classmates—are making steady popularity gains, as of late. Sites like LinkedIn and Xing have grown this year, along with other social networks, but have become some of the fastest growing sites of the group, which may be a result of the struggling economy and people’s desire to strengthen their professional relationships “just in case.”

According to Nielsen Online’s latest numbers, LinkedIn was the second fastest growing social networking site in the month of September, ranking highest among those aged 35 through 49. A broader look at the data shows that LinkedIn was the fourth fastest-growing social networking site over the last year, showing a 193 percent year-over-year increase since September 2007. The most popular social networking site on the web, Myspace, still managed to hold its spot at number one in terms of audience, but only saw one percent year-over-year growth. Facebook saw a 116 percent growth, by comparison.

LinkedIn CEO Dan Nye says that a new member joins the site every second. “The network is booming right now,” Nye told the Financial Times. “Financial services is one of our fastest-growing sectors. Clearly people are joining as they are thinking about their employment situation. People are also getting advice from their network, reference-checking vendors or searching for candidates to fill positions.”

Similarly, Germany-based Xing is experiencing growth thanks to the economic downturn, and recently reported 86 percent revenue growth for the third quarter of 2008. “We see the crisis as very beneficial for business networks because you are spending more time on your career than on luxuries,” Xing CEO Lars Hinrichs told FT.

As we know, social networks have apparently grown so much recently that they have surpassed even pornography in web search popularity. Some analysts even believe that government departments may soon move past previous failed endeavors and join the social networking craze in order to facilitate communication across organizational boundaries. So, what are you waiting for? With the economy going into the toilet, you’d better