Accountancy contractors increasingly upbeat
Accountancy contractors increasingly upbeat on job prospects in investment banking
Well over half of accountancy contractors expect earnings to rise over the next year
Accountancy contractors are increasingly confident about finding work in the investment banking sector, reveals new research by giant group plc, the contractor services provider.
According to the giant research, 15.7% of contractors think investment banking and fund management is the sector of the UK economy that will provide most of their job opportunities over the next 12 months, which is up from just 9.4% who thought so last year.
According to giant, the bounce back in optimism about job prospects in the investment banking sector is in stark contrast to the bleak outlook following the collapse of Lehman Brothers in September last year.
Matthew Brown, Managing Director of giant, comments: A year ago confidence in demand for accountancy skills in the investment banking sector evaporated overnight as banks were gripped by paralysis.
Its not exactly business as usual, but investment banks are gradually getting back into hiring mode.
According to the giant research, the sharp rise in confidence amongst accountancy contractors in the investment banking sector during the next 12 months stems from a widely-held expectation that the level of deal-making activity will now start to accelerate.
Matthew Brown says: There has already been an upsurge in M&A deals in the second quarter of 2009 and bond issuance has also picked up as confidence levels have risen and investor appetite has begun to return.
The giant research also reveals that 61% of accountancy contractors expect to see a rise in their earnings over the next 12 months.
Matthew Brown says: A clear majority of contractors expect to earn more next year, which considering the cost cutting that followed in the wake of the Lehman collapse, is an encouraging sign. A large number of banks slashed rates for contractors this year, but increased demand for contractors in the investment banking sector should mean the outlook for rates is more positive in 2010.
According to the giant research, 40% of accountancy contractors still expect their next contract to come within the public sector.
Matthew Brown says: The public sector has provided useful ballast to the market during the credit crisis and for the short term at least will continue to be a good source of contract opportunities.