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New Cityjobs drop 15% in September

New Cityjobs drop 15% in September

Approximately 2,490 job vacancies in September, down from 2,925 in August 2012

Requirement to rehire senior staff who can address credibility gap and reassure corporate clients

After a stable summer jobs market, the number of new City jobs has taken a sudden 15% drop during the last month says Astbury Marsden, a leading financial services recruitment firm.

Approximately 2,490 City jobs were created in September 2012, down from the 2,925 created in August 2012.

Mark Cameron, Chief Operating Officer at Astbury Marsden says: “The last quarter has seen two of the UK’s most successful banks put in the stocks, the widening of the Libor scandal and announcements by a number of banks to continue to scale down their investment banking operations. It has proved to be an unexpectedly bad summer for bankers.”

“Politicians, regulators and other Government agencies here and in New York now need to be careful not to cause the sector unnecessary collateral damage.”

“Tighter regulations, lower returns caused by the need to hold higher capital reserves and low levels of activity caused by continued political wrangling over the Eurozone crisis have all conspired to depress income for investment banks.”

Astbury Marsden says that the Centre for Economics and Business Research has predicted that by the end of 2012 the City will have lost 100,000 jobs since 2007, leaving 255,000 finance jobs, the lowest since early 1996.

Says Mark Cameron: “One obvious way to improve short term returns is to reduce costs, and many leading investment banks have continued intensive cost cutting initiatives and redundancy programmes. New Chief Executives and senior management teams will start with a clean slate, and one of their initial priorities will be to address their cost base, which will have an inevitable impact on job numbers.”

“Let’s be clear – we are certainly not expecting the City jobs market to collapse and there have been signs of stability in 2012. However, it seems likely that the City jobs market will remain subdued to the end of the year.”

“We are also entering a stage of the year when activity dips and HR departments and senior management teams within banks start to review recruitment strategies for the next year. As the latter stage of the year approaches, many will batten down the hatches and wait until the New Year before making additional department hires.”

Demand for senior client facing staff

Says Mark Cameron: “There has been demand from banks to put in place senior relationship managers who have the gravitas to reassure corporate clients over the advice that they have got and the products they have been sold.”

“Investment banks realise that all the scandals of the last few years have impacted on their credibility. So there is new wave of additional requirements for very senior client facing staff –some banks are even bringing back employees who may have retired.”

“They are bringing back into client facing roles those managers who are seen as trusted advisers who can bridge that credibility gap.”

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