Here's confirmation of what we feared.
Bloomberg reports that job vacancies at London financial-services companies fell by more than a third last year as banks cut staff in response to tighter regulation and weaker securities markets, a recruitment firm has said.
New vacancies in the British capital’s City and Canary Wharf financial districts dipped 35% to 35,115 in 2012, down from 54,025 in 2011, the London-based recruiter said in a statement Monday. There are said to have been about 800 new City jobs available in December, compared with about 1,490 in the same month in 2011.
Although recruiters hoped that the worst is over, fears are growing that what we are now seeing in London's financial district is the 'new normal', with shrinking firms hiring fewer staff.
One recruiter told Here Is The City: 'Revenues remain under pressure and most London-based recruiters are feeling the pressure. December was very quiet (even allowing for the holidays), hiring firms are becoming more fussy and demainding to see a bigger selection of Cvs, and hiring decisions are taking a lot longer than before. And it's difficult to see how this will change anytime soon'.
One bit of good news for the City is a story that was published in The Times last week that suggested that all this talk of a major restructuring of UBS-type proportions at Barclays investment banking unit is just a smokescreen. Some feel that Barclays is likely to be found to have just tinkered around the edges with its profitable investment bank when it releases details of the restructuring next month.