Job recruiters have revealed that last month there was a steep fall in the number of finance sector jobs available. The news is not good for those in employment, especially city bankers who may be faced with losing their jobs, since they will have a long struggle in finding employment in the finance sector.
Fall in jobs
The fall in the number of jobs is adding to the growing concern over the condition of the UK jobs market, and this will no doubt have an effect on the economy which is already weakened by the state of the financial markets and the wider economy.
A report by Morgan McKinley City hiring agency has revealed figures highlighting the fact that in July vacancies had fallen by 10% compared to the previous month, a fall by 4,977 jobs. This figure is 18% down on the same period last year. The report has come out just before eight banks announced job cuts of the amount 19,000.
There was some positivity surrounding the financial services industry last year as the industry was seen as the one sector that looked to be hiring, this was because banks had a view to rebuilding teams after reducing jobs too extremely during the recession.
But these hopes have been dented as it was thought that the hiring in the industry would filter too other industries, but it looks as if the job market has gone back to square one once again.
Early this week it was warned by Michael Page, the accountancy and finance specialist, that the hiring of new individuals had halted with HSBC, Barclays, UBS and RBS looking to reduce thousands of jobs as they believe a reshape of their businesses will put them in a stronger position in the wake of falling investment banking profits.
The conditions have been described as a “perfect storm”. Andrew Evans, chief operations officer at Morgan McKinley said: “The decline in financial services job opportunities in July 2011 is unsurprising given recent economic issues. In addition, there is a real lack of clarity on how the rest of the year will play out”