London, 16 February 2011. The number of confirmed job offers within Financial Services decreased for a second consecutive month, recent research has found. The study was commissioned by city pre‐employment screening firm Powerchex, which looked at confirmed job offers made throughout January 2011. The figures showed that the number of employment offers fell by 2% in January, compared to the previous month (see figure 1).
Losses were confined to just a couple of industry sectors; IT contractors working in Financial Services saw a 79% decrease in the number of confirmed appointments, and Hedge Funds made 8% fewer job offers than in December. There were gains in Investment Banking, Hedge Funds, Stockbrokerage firms and Investment Managers (up 23%, 13%, 6%, and 2% respectively).
Alexandra Kelly is MD and founder of Powerchex and also MD of HireRight’s preemployment screening operations in EMEA:
"While a 2% decrease in job offers is by no means a positive development, in the context of December’s 21% fall in recruitment activity, the job market appears to have stabilised significantly. While I anticipate that the first quarter of 2011 will be slow in terms of recruitment, I am encouraged that the job market has levelled out, and that the substantial decline we reported at the end of 2010 has not continued into the New Year."
However, things are not looking so rosy for IT contractors looking for roles within Financial Services:
"The fact that the number of available opportunities for IT contractors fell by almost 80% in January is a worrying development in its own right,” continues Kelly. “However, putting the latest figures into context, there are 32% fewer opportunities now than in January 2010 when the job market was really competitive (see figure 2). Many organisations appear to be delaying funding decisions to see what other companies are doing and make sure they are not over‐committing themselves in non‐core projects. This is not good news for IT contractors…"
Powerchex is the UK’s premier pre‐employment screening firm for financial institutions. Based in the City of London, Powerchex checks the background, employment history, criminal records and professional qualifications of applicants on behalf of financial institutions. It sets the industry benchmark of 5 days for a background check. www.powerchex.co.uk.
Powerchex is a HireRight Company.