Finance & Business Job Growth at twelve year low

Uncertainty in the Finance & Business Services sector has led to the most cautious Q2 employer hiring plans in over a decade (since Q2 1996), according to accountancy and finance recruitment specialists Manpower Professional.

Paul Robbins, Head of Manpower Professional, says: ìThe decline in hiring confidence in the City and financial institutions sparks a genuine concern over the impact of the credit crunch. We are seeing a significant slowdown in this sector compared to last year and whilst the figures are still positive, the current climate is one of uncertainty.î

The Manpower Employment Outlook Survey, a quarterly study over 2,100 UK employersí hiring trends, show that employers in the Finance & Business Services sector report a hiring Outlook of 7%1. Nine percent of employers in this sector plan to take on more workers and two percent intend to reduce headcount for the April to June period. Although the Outlook is one percentage point stronger than the national average, it is a significant four and 12 percentage point weakening quarter-on-quarter and year-on-year. The Outlook remains the same when seasonal variations are removed from the data.

Business Services sub-sector employers ( 7%) reveal their weakest period of hiring confidence in four years (since Q1 2004) with a drop of three and 11 percentage points over the quarter and year respectively. This overall fall in hiring confidence is also reflected in the Finance sub-sector ( 4%), with employers anticipating a considerable drop of 16 and 23 percentage points over the quarter and year, respectively.

Robbins, continues: ìConcerns about the strength and performance of the UK economy, coupled with recent worries about the stock market and consumer confidence, is having a particular impact on the Finance & Business Services sector. A number of City employers have already started to make redundancies and it is likely we will see more reviewing their staffing requirements in the coming months.î

ìHowever, outside of London we have not yet seen a real impact from the credit crunch. For instance, many of the major businesses in the Midlands, Manchester and Leeds continue to recruit and seek the best talent on the market and this is keeping employer confidence high in the SME marketplace.

ìThe demand at the senior level is becoming more specific to commercial and analytical based roles within Accountancy and Finance, whilst the requirement for junior and clerical staff remains high. The real move we've seen in recent weeks is the increase in demand for temporary /contract requirements, as businesses look for greater flexibility in their workforce.î

Across the country, all employers report positive or neutral hiring plans over the next three months. Employers in the East ( 11%) are the most optimistic of all regions surveyed whilst those in the North West (0%), East Midlands (0%) and South West ( 2%) are the least optimistic about their hiring intentions. Employers in all of the regions surveyed, with the exception of the East, reported decreases both year-on-year and quarter-on-quarter in their hiring plans. Employers in seven of the 12 regions surveyed anticipate a hiring outlook equal to or above the national average.