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Financial services contractor job offers up, but rates under pressure

Published on Dec 22, 2009 | | Contract Rate Checker

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The number of financial services job offers has risen this month, raising hopes of a lasting economic recovery. However, the large number of applicants has forced down contract daily rates.

New figures released by Powerchex, a pre-employment screening firm for financial services, show a 2% increase in job offers from the previous month raising hopes of a lasting economic recovery.

Investment banks, hedge funds and brokerages - all hard hit by the economic downturn - all showed significant increases in recruitment from the previous months, with investment banks leading the war on talent by increasing their offers by 15%.

Contractor market gains, as IT projects recommence

Job gains were also produced in the IT contractor market, according to Powerchex, mostly reflecting the recommencement of IT projects that had fallen by the wayside due to the recession.

However, daily rates have been slashed as there are far more job applicants than there are jobs.

"There appears to be a direct correlation between job offers confirmed and optimism in the economy" says Powerchex MD Alexandra Kelly. "City firms do not want to lose out on talent as the economy improves, so they are ready to resume recruitment. Their optimism however is fragile, and even on a week‐to‐week basis they can change their recruitment goals as the news about the economy vacillates."

"There is some evidence of stabilisation but it remains to be seen just how durable this proves to be" says Kelly.

"Financial services is the primary engine for growth in the UK; when the City thrives the UK economy grows. It is as simple as that; but in a pre‐election climate, the government is introducing policies that can drive talent away from the City and to more welcoming jurisdictions."