By Daniel Hunter
The number of new City jobs dropped 35% in 2012 (year ending December 31st) according to Astbury Marsden, a leading financial services recruitment firm.
Astbury Marsden says that approximately 35,115 new City jobs were created in 2012, compared to approximately 54,025 in 2011. They add that there were only around 800 new City jobs available in December 2012, compared to approximately 1,490 in December 2011.
“2012 was a busy year for HR departments across the City as cost-cutting remained a key focus for senior management and board members throughout the year," Mark Cameron, Chief Operating Officer at Astbury Marsden, said.
“Tighter regulation including higher capital requirements forced up costs at a time when revenues dipped due to a number of factors including a continued weak economy and less trading activity.
"Although broad cost cutting is fairly typical in the City during a downturn, 2012 was particularly significant as senior management in banks took very decisive action and implemented major structural changes including winding down entire units.
"Hopefully we are now behind the worst of the cost-cutting. Although banks may still tinker with staffing numbers, most of the obvious and immediate cuts are likely to have now been made.”
Eurozone crisis calming
Developments in the handling of the Eurozone crisis since the autumn have started to have a positive impact, which could improve hiring confidence in 2013.
“Some of the dark clouds around the Euro — which has been a major concern in the City for the last eighteen months — seem to have lifted which will encourage some firms who are contemplating hiring staff," Cameron added.
“Whilst the closure in the US budget battle is still to come, markets have responded well to progress already made there. For the world’s largest economy, which is so important in setting trends globally, 2013 has certainly started on a more positive note than 2012 ended, which could help mitigate the gloomy outlook around hiring.”
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