Although we've seen the first run on a bank since the war, and we've seen all the big players in the City log in some grim results, life for a contractor who works in financial services probably hasn't changed much. There's a severe shortage of skills in this country, and so contractors are needed regardless of economic conditions.
No Major Change
Essentially, there has been no hiring slowdown or slowdown in the use of contractors in the financial services industry in the UK, according to the job boards that are the best indicators of demand.
The Mandis-Adecco Job Creation Index, a joint venture between the London-based business intelligence firm Mandis, and the Borehamwood, Hertfordshire human resources firm Adecco shows no dramatic change for the period.
Index Gives Accurate Picture
City job numbers fell 2% versus August 07 levels but were still strong on the same month the previous year, rising 12% according to the Index. Candidate movement dropped 12% in September 07 compared to August 07 as finance workers were less willing to move due to the upcoming bonus season as well as concern over recent stock market volatility.
Incidentally, the average salary in the City is still about GBP 52000 per year. The number of redundancies has remained stable. So bankers in the City may have to forego that extra case of Mouton-Rothschild this year, but the breadlines aren't forming up. Yes, bonuses will be hit for financial services professionals who had been earning bumper levels for the past three years. But for contractors, that doesn't change much.
The average salary in the City is still about GBP 52000 per year
Mandis-Adecco Index
An informal survey by ContractorCalculator confirmed that no contractors in the sector had suffered declines in assignments or in fee levels. Fees average GBP 40-60 per year in City contracting, though of course they can run much higher in specialist or management roles.
Says René Schuster, CEO Adecco Group, UK & Ireland, said, “We have seen a positive rise in job creation this month. Despite the credit crunch that is affecting city and financial jobs, a number of key sectors have shown strong efforts in job creation this month.
Skills Shortage Too Acute
Why are contractors still working at the same levels? Because of the extraordinarily acute skills shortage in the City. Even the Treasury Select Committee of the House of Commons wrote in its last report about the considerable dangers of the skills shortage in this country, and surely when politicians notice, it most be severe.
A study by the London-based employment agency Robert Half confirms this: More than half of the finance and human resources managers surveyed in the UK-- a full 56%--reported difficulty finding the skilled workers they need, and 43% expressed concern about losing top performers to other job opportunities.
The areas of greatest need are for: operational support, financial analysis, general accounting and controller positions. Database, mobile phone, and Web-related areas are also in heavy demand. Engineers are needed all across the board (not just in the City, but all over the country).
Says Phil Sheridan, UK managing director of Robert Half: ''With this demand outstripping supply, organisations are expediting the hiring process, and offering premium remuneration packages in order to attract and retain these high level individuals [in finance]”
So long as financial services remains a tough, competitive industry which has complex compliance challenges, then contractors won't have trouble finding work in the City.