Bloomberg News

London’s Financial Job Seekers Decline 58%

June 12, 2012

London’s Financial Job Seekers Fall 58%, Recruitment Survey

Pedestrians pass the Royal Bank of Scotland Group Plc (RBS) headquarters in London. Royal Bank of Scotland Group Plc is Britain's biggest government-owned bank. Photographer: Simon Dawson/Bloomberg

The number of people seeking jobs at London financial-services companies fell 58 percent in May as the euro area debt crisis and the U.K. economy undermined employment prospects, according to a survey.

The job seekers in London’s main financial district, known as the City, and elsewhere in the British capital fell to 6,419 in May from 15,150 in the year-earlier period, recruitment consultant Morgan McKinley said in a statement today.

“The current economic background naturally leads to a lesser inclination for professionals to start looking for new jobs,” Andrew Evans, chief operations officer at Morgan McKinley Financial Services, said in an e-mail. “The uncertainty could deter professionals from leaving their current roles.”

London’s financial-services industry is shrinking as the European sovereign debt crisis erodes earnings and as politicians blame financiers for the 2008 financial crisis, spurring increased regulation. Investment banking revenue may fall 24 percent in the second quarter as the effect of the European Central Bank’s 1 trillion-euro ($1.3 trillion) of loans to the banking system wears off, JPMorgan Chase & Co. (JPM:US) analyst Kian Abouhossein said last month.

The number of jobs openings fell 25 percent in May to 5,229 from a year earlier, Morgan McKinley said. It gained 17 percent from a month ago.

About 75 percent of financial-services employees received a bonus for 2011 and about 42 percent indicated they were satisfied with their payments, Morgan McKinley said separately.

European investment banks could cut compensation costs by 29 percent to increase returns as “revenues remain unpredictable in the medium term,” Societe Generale SA (GLE) wrote in a note today.

To contact the reporter on this story: Ambereen Choudhury in London at achoudhury@bloomberg.net

To contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.net


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