Creation of new City jobs pauses as banks digest oil and Greek shocks
Astbury Marsden says that January is normally a strong month for new job creation as staff that have just received their bonuses jump ship for better pay or career progression. However, Astbury Marsden says that this January, fewer candidates have come forward to start job searches the number of new candidates was 3,523, down by 50% on the 7,156 candidates in January 2014.
Astbury Marsden adds that the number of new roles created in January 2015 was up by 156% on December.
Adam Jackson, managing director, said, “With tumbling oil prices, mounting concerns about how the Syriza election victory in Greece will play out across the Eurozone, and the surprise removal of the ceiling on the Swiss franc, there has been a huge amount for the markets and for the banks to absorb.”
“That is prompting the banks to take a little time to review both their overall strategies and hiring decisions. Higher regulatory capital costs had already prompted several banks to downsize or sell their commodities and oil trading teams, but those that still have a significant presence in those markets may be reviewing their short-term plans.”
“City recruitment was gaining momentum during 2014, but with all the drama of recent weeks it is not surprising that we are seeing a slight pause."
Astbury Marsden explains that hiring to compliance, regulatory strategy and risk roles remains strong as banks continue to implement and plan for regulatory change, including the forthcoming MiFID II.
Jackson added, “The EU has just reconfirmed its intention to press ahead with complete capital markets union – it’s clear that significant regulatory change will continue to be both a challenge and a potential competitive advantage for the banks for some time to come.
“However, having made significant investments in strategy and regulatory staff, the banks have much of the brainpower they need already in place. There’s naturally a little less urgency involved when it comes to enhancing and expanding those teams, so decision making is a little more considered and costs are more tightly controlled.”
Job creation has fallen 18% on the same month last year