Optimism leads to more City jobs
A growth in City banking jobs has been put down to a growing perception of better prospects for the banking and finance industry and an increase in stock market flotations.
Research by recruitment consultancy Astbury Marsden shows an additional 6,650 jobs created in the last month — 7% higher than May 2010. The increase in IPOs (initial public offerings), or flotations, responsible for an increase in investment banking revenues has created room for many new jobs and a new lease of optimism. In particular, large IPOs from organisations such as Linkedin, Groupon and Glencore have created a considerable amount of work and thus demand for more workers.
The City of London seems to be in the midst of a cycle of fresh change. In addition to new jobs, nearly 11,000 of current City employees are actively searching for new jobs. This is perhaps due to a thirst for more opportunities higher bonuses, which seems more achievable now the industry is looking far more optimistic. Astbury Marsden chief operating officer, Mark Cameron, suggests that this optimism has caused a shift from employers waiting for the industry to recover from the economic instability, or ‘credit crunch’, to attempting to work their way up the City ladder.
However, it is suggested that these statistics showing an increase in new jobs are not as impressive as they may seem because many of the jobs opening in May would have been made available the month before if it wasn’t for the Royal Wedding and numerous bank holidays. Cameron thus describes the increase as a “healthy, not explosive growth”. Nevertheless, it is an encouraging increase following an uncertain period of low hiring activity on account of the disruptive April bank holidays.