Financial recruitment grinds to a halt

Recruitment in London’s financial services industry has ground to a halt according to international recruitment group, Michael Page.

As the economy grinds to a virtual standstill, demand for staff in the banking industry has slowed considerably over the last few months said the group.

Michael Page said several banks have been relocating staff to growing economies such as China, Dubai, Mexico and Russia.

Steve Ingham, Michael Page’s chief executive, said the UK’s financial services sector is grim, the further you get away from London, the better the prospects.

Banking giants such as Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs and UBS have all announced plans to reduce their workforce this year as the credit crunch takes its toll.

In addition, a recent survey by the Centre for Economic and Business Research (CEBR) and the Hay Group, revealed that the UK is experiencing the most challenging economy environment in 15 years.

As profits fall, business are getting prepared to cut staff with companies saying they are set to reduce their workforce by an average of 1.1%, which represents 350,000 jobs across the UK, according to the survey.

Gross profit in UK finance and accounting fell 8% in the second quarter of the year, according to Michael Page, however the drop was offset by sharp growth in other areas of the economy, such as engineering and manufacturing, as exporters take advantage of the lower pound.

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