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From hiring to not-hiring (or even firing)?

Does chaos in the credit markets spell doomsday for jobs?

“It’s too soon to tell,” says James Nicholson, director of recruiter Robert Walters. “Macquarie and BNP Paribas are two of our big clients and there have been no directives changing their hiring strategy. But, if this tumult gets worse, I would expect it to have a big effect.’

Edmund Gill at recruiter Hays also says it’s too soon to call, but if there are changes, it will be that fewer permanent staff are hired and more temporaries take their place: ”It will have a bigger effect, sooner, on high-risk mortgage lenders and on small investment management companies and hedge funds, but Australia has very few of these.”

Private ‘equiteers’ say the market was overpriced and see this as a return to reality which will balance things. Ken Allen, senior adviser at UBS, says the credit crunch means money will be less available, but “the correction makes things cheaper, so people won’t need to borrow as much.”

And will it affect bankers’ wealth? “Not on your nelly!” they yell. But paper losses are big. Macquarie Bank’s shares (which make up a fair proportion of its employees’ remuneration) fell 7.6% last week and its US Fortress funds lost up to 25%. Given that Macquarie employees can trade its shares only three times a year (after results announcements and the AGM), they certainly were stuck with paper losses. At least they still have their jobs.

Comments (2)

  1. I never ceased to be amazed at the opinion of ‘so called’ experts – finance specialists/strategists, fund managers, brokers, economists, bankers, politicians, et al – when they comment on areas of the economy of which they are controlling and /or managing, particularly when it comes to commenting on WHAT is happening in their areas of ‘expertise’. My usual comment is: Whatever the ‘experts’ say (and do), consider (and expect) the opposite and you’ll probably be right.

    This current situation has being in the offing for some considerable time – an accident waiting to happen. The initial ripple is now turning into small waves, which will probably become a tidal wave, and (possibly) a tsunami.
    These ‘experts’ are good at commenting on things after the event, not before.
    Unfortunately, the masses are the ones who bear the brunt – the experts have said one thing, but done the opposite to save their own skins, and are bunkered down waiting for the opportunity to pick up the bargains from the mess they’ve help create and fertilise.
    As usual, the significant job losses which will occur in the finance (and other) areas will be foot-soldiers

  2. Ironic how these so called “consultants” have such strong opinions and seem to know everything as well…

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