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Late Lunchtime Links: New jobs down 80% in five years. 200 jobs here, but firms penalized for opportunistic hiring

Downgraded for opportunism

Downgraded for opportunism

Cast your mind back to October 2007. There had already been a run on Northern Rock, a few problems at Bear Stearns’ hedge funds and over $3bn of sub prime losses at UBS. But in terms of jobs, things still looked pretty healthy: that October, there were 13,000 new finance jobs in London according to recruitment firm Astbury Marsden. Five years later, and Astbury Marsden thinks just 1,790 new jobs were created in October 2012. “This is by far the most dramatic slump we have seen…” says Mark Cameron, Astbury Marsden’s COO, cheeringly.

In the midst of this slump, Cantor Fitzgerald has – as ever – declared its intention to keep hiring. Fresh from purchasing Dolmen stockbrokers in Ireland, Cantor CEO Shaun Matthews says he wants to hire 200 people next year. When we spoke to him in October, Matthews said he wanted to add 50-100 people before the end of 2012, so it’s reassuring to know that Cantor’s expansion plans are continuing past January.

Less promisingly, Cantor has had its rating cut to one notch above junk by S&P. The agency cited Cantor’s “opportunistic hiring” as a factor in its decision. Worryingly, opportunistic hiring was also a factor in Moody’s recent downgrade of Jefferies.

New jobs have fallen off a cliff and firms that hire staff opportunistically are being punished. It doesn’t bode well for 2013.


Lloyds is going to trim its FX team. (Financial News)

Nomura’s cash equities team have moved in with Nomura in Canary Wharf. (Financial News) 

Greenhill wants to hire more staff in Europe and eventually to add people in Asia too. (Financial News)

Look at the effect that Glenn Hadden had on rates revenues at Goldman Sachs and Morgan Stanley. (Quartz)

Glenn Hadden is rumoured to earn up to $10 million a year in salary and bonuses. (The Times) 

Mitsubishi UFJ wants to hire experienced bankers in Tokyo. (Bloomberg)

John Hughes, Kweku Adoboli’s ex-boss, says he originally wanted to be a teacher, but was advised by his aunt to make some money as his family had never had any. (BBC)

New ‘sitting pad’ sounds an alarm if you’ve been sedentary too long. (Medical Express)

If you accuse a large bank of money laundering in Germany, you may be committed to a psychiatric institution. (The Guardian)

How do investment bankers justify earning 7 figures? (Quora) 

Ex-JPMorgan and Credit Suisse banker sets up singles dinner dating experience. (City Am)

Comments (2)

  1. Pointing that Cantor or Jefferies are still hiring amidst all this is like saying that McDonalds is hiring while jobs across the public and private sector are going by the thousands. Cantor to someone who has lost in job at one of the banks is like flipping burgers. It’s no consolation. In fact it validates that things are pretty bad indeed when the only hiring firms are Cantor and Jefferies …

  2. Above post a little unfair. The banks’ have priced out labour by fixing salaries at huge levels. Salaries should be a quarter of what they are at the decent names.

    Meanwhile, why can’t those further down the foodchain take advantage of the abundance of cheap food left to putrefy?

    An alegorical history lesson: Maggie lifted the UK out of its 4mm unemployement issue by creating ‘McJobs’ in our fine land whilst killing swathes of inefficient industry fattened by unions’ pay demands. Are Cantor and Jefferies really doing anything that different?

    I’ve flipped burgers (at one of the above) and moved on, as I remember Maggie suggesting to those who did the same.

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