Volatile markets unsettle city workers but employer confidence rides high

The confidence of workers in the Financial Services sector is faltering, according to a poll carried out by recruiter Joslin Rowe, part of the Blomfield Group. But while employees are jumpy, financial services employers are confidently hiring new staff.

When asked what impact recent volatility in the financial markets would have on basic salaries, 56% of workers said this would have a broadly negative impact. 32% thought it would have no impact at all. A small minority (12%) expected a positive impact.

Respondents were also asked what impact the roller-coaster markets would have on new hirings. 54% thought volatility would have a negative impact on new hirings, 21% thought there would be no impact on new hirings and 25% believed it could have a positive effect.

Financial services employers do not share this downbeat assessment of their workers, according to the companyís data on new jobs advertised. This indicates financial services jobs across the UK are booming ñ despite worldwide market volatility. While financial markets remain unsettled by fears of rising in global interest rates and inflation, the number of new jobs across the nationís financial services sector rose by almost 19% last month.

Tara Ricks, Managing Director of Joslin Rowe Associates, part of the Blomfield Group said: ìVolatile markets have unsettled City employees who are highly sensitive to short term fluctuations. Employers, however, need to think much longer term when planning their staffing levels and look beyond short term vagaries of global markets. Indeed, these conditions are presenting new opportunities for some sectors. Employers are hiring enthusiastically as our research shows, and we have just had one of our busiest months on record.î

Despite weeks of market fluctuations, the number of both permanent and temporary roles increased. The number of temporary jobs on offer rose by more than 32% from 13,225 in April to 17,475 in May. But the number of permanent roles also increased from 21,050 to 23,300, a rise of 10.7%. The jobs experiencing the highest increases were in the Insurance, Life & Pensions sectors, rising an average of 21.4%.

Nabila Sadiq, Managing Director of Joslin Rowe Temporaries, said: ìStaff on short term contracts are fundamental to the smooth running of the financial services industry as they allow firms to manage their businesses with maximum flexibility. Demand is extremely strong at present and this is an excellent indication of the Cityís confidence.î