The good news is in. Financial services’ jobs in the City of London increased to exceed pre-financial crisis levels of approximately 690,000. Although employment decreased for the first two quarters of 2013, the year ended with an additional 13,200 jobs. Successive job growth in the sector has occurred each year since in 2011. According to “Great Britain: H.M. Treasury – 2013,” financial services employers are likely to increase staff during market growth cycles. To that end, research published by TheCityUK forecasts an additional 2.7 percent rise in employment throughout 2014 (about 707,500 jobs).
How financial services firms recruit new hires
Firms on a calendar fiscal year tend to create jobs and recruit employees between year-end bonus season and the first quarter of new year operations. Approximately 1,300 new jobs were created in the City of London’s financial district. This figure is up about sixty-seven percent since December 2012. Hot new jobs include sales, sales-trading, and trading roles. As expanding shares and derivatives trading levels rise, more back and middle office staff, including risk managers and compliance professionals, are needed.
Talent crunch and aggressive recruiting practices
According to research firm A. T. Kearney, job cuts since 2008 caused many City financial services teams to operate with fewer than an average number of employees. This factor alone enabled rising stars to gain access to more productive accounts. In light of rapidly rising profitability, financial services firms in need of new employees find themselves facing stiff competition from other employer bids. Salary and guaranteed compensation levels are rising for financial services employees in demand. Some EU-based employers with City offices, bound to the bonus cap of one or two times’ (with approval of shareholders) salary, continue to pound the table regarding the need for higher salary levels in the financial services sector.
Indications of London’s financial services jobs recovery
In fact, indications of financial services’ expansion collected from TheCityUK’s Competitiveness Tracker (UK) support continued financial services’ market recovery. Business volume, equity market turn, and forex trading rose year-to-year. According to the Office of National Statistics (ONS), the broad UK economy also grew by almost two percent in 2013, the strongest increase since the onset of the global financial crisis in 2008.
Predictions of broad recovery on financial services’ foundation
Professional services firms like Ernst & Young (EY) “Outlook for Financial Services Winter 2014” also forecast improved outlook for UK’s economy upon the base of financial services growth. The firm predicts a healthy 2.4 percent average annual GDP growth between 2014 and 2017. So it might be a good time to prepare your CV and check your value on the market.