Monster's U.S. employment index fell to a reading of 122 in January from the reading of 130 in December. However, the index was still up 7 percent on a year-over-year basis in January.

"We're seeing positive year-over-year growth as economic recovery progresses at a measured pace," said Jesse Harriott, senior VP and chief knowledge officer at Monster Worldwide Inc. "Private sector hiring, particularly in IT, business and healthcare occupations has been fueling growth which is encouraging. At the same time cuts in government-related recruitment since December are weighing down on overall growth, but not enough to prevent [year-over-year] growth for the first month of 2011."

The index is based on a review of online job ads taken from a selection of Web sites, including Monster.