A new survey from the CBI and PWC suggests the financial services hiring spree isn’t over yet.
The latest quarterly CBI and PricewaterhouseCoopers financial services survey suggests business for UK financial services firms is softening slightly, but they plan to keep hiring all the same.
Fund managers appear particularly bullish. The percentage balance of fund managers expecting to hire against those expecting to reduce staff in the next three months is 84%. John Hitchens, UK banking leader at PricewaterhouseCoopers, says it’s down to strong revenue growth: “Fund management houses are optimistic and have been hiring strongly for ages.”
Securities trading houses are less confident, with the balance of houses planning to add staff compared to those planning to chop them in the next three months at a mere 2%. At the same time, trading firms expect staff costs as a proportion of total costs to soar in the near future (big guarantees?), and staff turnover is on the up.
The CBI’s survey doesn’t extend to the M&A side of the business, but we think it’s safe to say that hiring will remain fairly robust here too – according to information provider Dealogic, global investment banking fees rose 17% in the six months to June, to 17.3bn.
Hitchens says the US sub-prime crisis, which last week claimed a London victim in the form of Caliber Global investment, is unlikely to have big repercussions for the City: “There’s no great contagion coming out of sub-prime and creating problems elsewhere. It’s going to be a little bit harder to do highly leveraged deals, but that’s not a big part of the UK market.”