The good old days are well and truly past. Once upon a time, the City created 12,000 jobs a month according to recruitment firm Astbury Marsden. And now? It's more like 2,500 jobs a month - a fall of 80%.
What's gone wrong? Astbury Marsden says diminished job creation is down to banks' absorption in regulatory issues, which are preventing them from focusing on expansion plans. "Many senior staff at investment banks are so tied up in dealing with regulatory issues - ranging from the minutiae of compliance work through to capital adequacy - that they have had little time to focus on pursuing new areas of growth," said Astbury Marsden managing director Jonathan Nicholson.
The good news is that the City created 3% more jobs in June than in May, according to Astbury Marsden - suggesting that things are nonetheless looking up. The bad news is that the new jobs were mostly related to cost cutting initiatives. “A significant number of banks are still looking very closely at where cost savings can be made, and have been hiring quite extensively for these efficiency programmes,” said Astbury Marsden chief operating officer Mark Cameron. “These programmes can create quite sizeable hiring markets in themselves, adding to the flow of jobs in the City. These teams also tend to have a lot of turnover, pushing up the number of roles available.”
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