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UK financial services market confidence amongst employers is the lowest it has been since 2002, according to data from the Securities & Investment Institute (SII).
Statistics going back to 2002, show the actual number of new reference checks undertaken by financial services firms for new or potential employees, received by SII. The figures reveal a fascinating insight into the confidence of financial services market firms at any given point in time.
The number of reference checks carried out for firms by SII in February 2008 was the lowest since SII records began in 2002. “February 2008 data shows firms interest in recruiting new staff slowing down quite possibly which is consistent with hiring freezes as firms respond to the continuing turmoil in the financial markets and an overall decline in confidence,” said Simon Culhane, Chief Executive of SII.
The highest number of reference checks since 2002 was in July 2007 at over twice the average. “This was the peak – just prior to the emergence of the sub prime problems, high consumer confidence and bullish forecast, coupled with a desire for operations areas to be beefed up in anticipation of the imminent Markets in Financial Services Directive (MiFID) regulatory changes in November 2007”, said Mr Culhane.
The SII published chart* of reference checks from 2002 usually demonstrates significant peaks of activity in Feb/March of each year around bonus time following which many employees bank their cheques and change firms.
The trend over the years also shows that low points tend to occur during the October/November period, just after the graduate recruitment rush, following which the numbers steadily climb to peak just before the end of the financial year.
In 2007, however, the decline began early in July, almost exactly in step with the confirmed news of the credit crunch and continued to fall from a high of 2.4 times the norm to just 0.37 – a fall of 84% as recruitment was frozen amongst the major firms.
*SII chart showing reference checks:
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