Lehmanís locals face jittery jobs market

As the sun sets on Lehman Brothers in Australia, the bankrupt firm is locked in talks with recruiters in a bid to secure positions for its soon-to-be-redundant staff. ìIt wants to put employees in touch with a select group of executive search companies to help them find their next job,î says one headhunter who asked not to be named.

Lehmanís 130-odd Aussie employees will need all the help they can get to stop their search becoming a slog. Domestic firms, such as Babcock & Brown and Allco, are also shedding staff onto the jobs market, while many international banks have imposed headcount restrictions, says Oliver Darkes, principal consultant at Carmichael Fisher.

ìThe employment market has tightened up in recent months anyway. Thereís a huge number of people out there looking for jobs which just donít exist. Banks are more focused on retaining their key performers, rather than hiring,î he adds.

Darkes reckons independent advisory firms, such as Grant Samuel and Calibre Financial Services, should catch a few of Lehmanís castaways. And there might be more opportunities early next year as post-bonus movement opens up the jobs market.

Troy Angus, portfolio manager with Paradice Investment, tells eFinancialCareers that senior Lehman bankers with strong reputations are the most likely to find a new home. ìBut not everyone has had time yet to build up a track record and those guys will struggle. The reality is that the number of jobs in finance here has shrunk. They might go to Dubai, they might go work on a farm, but not all of them will stay in banking in Australia.î

Angus expects further cuts across the investment banking sector this year and next. ìDeals are down and revenues are falling. You usually find that job losses start flowing a few months later.î

But the Bank of America takeover of Merrill Lynch might not have a major impact on local jobs, at least in the short term, adds Angus. ìFor one thing, the deal wonít be finalised until Q1 next year. Plus there isnít much overlap between the two businesses in Australia. Merrill is a much bigger player here.î