Financial Services Temps in demand as job uncertainty hits the city

According to figures released today, financial services jobs in the UK are undergoing a transformation as the credit crunch continues to loom over employers. It seems companies are facing up to market uncertainty by boosting the number of temporary staff on their books.

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The figures, from international recruitment consultants Badenoch & Clark, come in the wake of a series of statements from the City announcing job cuts. Indeed researchers at JP Morgan predicted the City could lose around 5% of its workforce if current conditions continued. However, Badenoch & Clarkís research suggests that, as well as job cuts, the sector is also meeting the crisis by changing the type of employee it recruits.

The figures suggest a steady rise in the number of temp roles within financial services, mirrored by a sharp decline in permanent jobs on offer. In Q1 2007, roughly two thirds of available jobs were temp and a third were permanent. This year, that ratio has shifted ñ now about three quarters of all roles are temp and just one quarter permanent.

Interestingly, the trend isnít being mirrored by City professionals themselves. There were 20% more people looking for permanent roles over the first period of this year compared with 2007 levels. Those looking for temporary roles actually dropped by 11%.

Guy Emmerson, Head of Temporary recruitment at Badenoch & Clark, comments: ìIn an uncertain market place, there tends to be a shift in financial services towards temps. They give companies a great deal of flexibility and help them to jump a lot of the hurdles the market can throw up, and the market is certainly throwing up a lot of hurdles right now.

ìThere has to be a bit of a balancing act though. Yes, temporary employees give many firms much more flexibility, but that has to be weighed up by the downsides of relying on temps. Permanent employees will often have attributes such as higher levels of loyalty, familiarity with systems and a deeper appreciation of company targets. Temps and permanent employees will both have their part to play in the coming months - the challenge to employers is making sure they have enough of both.î