Nomura lends Lehman a lifeline but job market still suffering

Lehman Brothers staff in Australia have been given breathing space to decide their future by Nomuraís expected takeover of their firm in Asia-Pacific. All employees in the region will be offered Nomura jobs if the deal goes through as planned. And in the meantime, the Japanese bank is said to be sticking to Lehmanís current salary levels for the rest of 2008.

Patrick Everest, a partner at Jon Michel Executive Search, comments: ìWhile Lehman staff will naturally still be considering all their options, some may now be more inclined to stay on, at least until the end of the year, to see what Nomura does. This time is a chance for them to make informed, rather than rushed, decisions.î

The Nomura takeover of Lehman should not cause too much direct upheaval locally because there would appear to be limited overlap in their respective businesses, says Everest. ìWith respect to Australia, it could be similar to the proposed Bank of America/Merrill Lynch merger,î he adds.

Turn for the worse

But the Lehman lifeline wonít stop a general downturn in financial recruitment in Australia. The global banking crisis and local worries about the business models of Macquarie and Babcock & Brown are conspiring to kill confidence in financial-sector hiring.

ìThe job market has turned in recent weeks, because of whatís been happening in the banking world,î says Neil Dyball, associate director of banking and finance at recruiters Robert Walters.

There is an over-supply of talent on the market, especially with the recent increase in Australians returning home, he adds. ìWe will see many banks in Australia reduce the size of their external recruiter panels. The focus is now much more on the quality of candidates rather than sheer numbers.î

Dyball tells eFinancialCareers that some leading local banks remain ìfairly strongî on the employment front and have roles open, especially in accounting and operations. Everest adds: ìCertain sectors, in particular risk and restructuring, remain active and itís still difficult to find good people.î