32% drop in available jobs in London’s financial sector in November. Are firms looking to exit to the Far East?
London’s financial sector employment boom appears to have not only slowed down, but pretty much collapsed in November this year, according to data from British professional services recruitment company Morgan McKinley. At a time during which many of the largest banks, including HSBC, Standard Chartered and Barclays are increasingly focusing their commercial attention on Hong Kong […]
London’s financial sector employment boom appears to have not only slowed down, but pretty much collapsed in November this year, according to data from British professional services recruitment company Morgan McKinley.
At a time during which many of the largest banks, including HSBC, Standard Chartered and Barclays are increasingly focusing their commercial attention on Hong Kong and Singapore, there could well be a correlation.
Last month, the number of available jobs in financial services in London dramatically decreased by 32% compared to October, with only 6,405 jobs available compared to 9,480 in October.
A coincidence, or not?
This massive drop occurred during the same month that many of the large banks whose interbank electronic trading orderflow represents a substantial proportion of all global FX transactions, including the aforementioned giants, had publicly expressed their drive toward looking away from London and toward Hong Kong and Singapore, the two largest locations for interbank and institutional trading in Asia which are fast becoming the most secure and lucrative on earth.
Therefore, it is likely that this employment slowdown is not a coincidence.
London had experienced an upward surge in its economic situation over the last year, especially since George Osborne, the incumbent Chancellor of the Exchequer, had announced an eyebrow-raisingly effective budget which focused on business, lowering the national debt, and stabilizing what had been a precarious fiscal situation in the UK since the financial crisis of 2009.
Banks had become more secure in their standing in London, the largest financial center in the world, and had shelved their plans to exit London should a socialist government or socialist policies be implemented post general election.
The economy grew at a rapid rate during the last six months, however in November, George Osborne reneged on his promises to reform the free-for-all moneygoround that is the British welfare system and stop blowing millions on those who have made a career out of government dependency, do away with tax credits, and ensure that Britain can once again become the financial force that it once was.
Instead, Mr. Osborne cowered to the pressure of the left and implemented none of what he had proposed, causing banks to once again re-think their position in a debt-burdened nation whilst the Asia Pacific region flourishes, its population wanting to create wealth rather than drain it.
Jobs down, but number of jobseekers up
An unhealthy situation can occur when the number of jobs declines, yet the number of people seeking employment in a certain sector increases.
In this case, the number of people seeking jobs has increased by 26%, despite the downturn in positions available. With London’s highly skilled and sophisticated financial sector executives being more available than before, it is likely that many of those who are unable to find what they want in London will look overseas and will be snapped up by top quality firms in the Far East, Canada and the US.
FinanceFeeds was at the FXIC Forex Industry Conference in Shanghai this week, and the array of British executives that represented some of the best firms in the FX industry were not living or working in London; instead Singapore being their domicile and, having spoken to those particular executives, there is no way they are heading back to London.
London’s financial sector feeds the vast majority of the British economy, therefore the Conservative government should consider being a little more ‘small c conservative’ if they want to retain the top income generators in the country, and the anarchists which are constantly ranting at full voice and creating havoc and damage to public and private property, a thing you do not see in the pro-business Far East, should perhaps be careful what they wish for.