London City Financial and Banking Firms are aiding in Job Creation in New York!

City firms are hampered by the debt crisis and feeling the pinch with job freezes as firms in New York sees job growth.

The job numbers from banks and insurers being removed from the hiring pool could reach 3,000 across London where as New York firms hiring needs could reach 9,000; according to the researcher Oxford Economics Ltd.

The reasoning for the difference is thought to be London's proximity to the crisis and although North American banks have also been effected by the global slowdown' it's their regions consumer lending that is the stand out difference either side of the pond.

As Europe sinks to greater depths and so making London less attractive for employers, as claimed by CEO of Challenger, grey and Christmas (Chicago) - Workforce reductions adviser. He also stated "Momentum for the lead has turned back toward New York and the U.S."

London's wholesale financial-services industry, could see 25,200 job cuts this year, according to the Centre for Economics and Business Research Ltd. HSBC Holdings Plc, has announced plans earlier this year to remove 3,167 jobs in its U.K. market. Deutsche Bank AG Germany's largest lender confirmed in July that it will cut 1,900 jobs, with 1,500 of these from its investment bank. This business operates heavily in London and New York.

Both Cities have been hiring!

Both cities financial services sectors have been hiring. London added 28,000 jobs in the two years ended Dec. 31 and 13,000 more in this year's first quarter, reaching 382,000, according to latest figures from the U.K.'s Office for National Statistics.

With 12,500 hiring gains in New York during those two years and 5,500 more through to July this year, as listed by New York State Department of Labour. This takes the number working in the financial industry to about 446,200, according to their data.

These numbers fly in the face of the past year's turmoil seen in the investment- banking industry, where the most lucrative pay packages are given out. The slump, and stiffer rules and limits on risk-taking, have left securities firms on both sides of the divide asking themselves if they're locked in a secular, or lasting, decline.

New York has seen a 15% drop in equity trading this year to date, compared to 2011 and London, is down 10 % on 2011. Mergers and acquisitions have been hit in both markets; Wall Street has seen a 35% drop to 575 billion USD and Europe 21%; a slide down to 505 billion USD. This slowdown resulted in a strategy from global sector firm to pare jobs in their securities divisions.

What about boutique firms?

Gustavo Dolfino, a former UBS AG banker in New York said "The bigger guys have an oversupply of people,". Meantime, boutique firms and regional businesses are targeting talent in specialist areas, such as health-care, technology and energy banking. One of the Wall Street firms with hiring aspirations are; Cantor Fitzgerald LP. They are adding 200 employees this year and possibly 800 more for its broker-dealer in coming years, according to CEO Shawn Matthews.

One wall street head-hunter (Adam Kahn) commented that "Many of the new jobs aren't "the same type of high-level, Wall Street, get-a-Porsche-and-Ferrari-type jobs that everyone was trying to put themselves in the position to get a couple years ago,"

Larger banks are adjusting for these reductions by hiring less-expensive workers. in New York's, Goldman Sachs is cutting 500 USD of cost with a large percentage of that saving coming from a hiring strategy that will see a greater proportion of junior employees being recruited by year-end, said it's Chief Financial Officer in July. Kahn also went on to say "Wall Street is tilting toward younger, up-and-coming talent, some of the folks that have a lot of experience and are paid a lot more money have been downsized in a cost-cutting effort."

Oxford Economics think; London's financial industry should rejoin New York's in adding jobs next year, with growth being about 1 percent in both markets. CEBR said in May; when it released "a sharp downward revision" to its forecast that 'The City' could regain almost 1,300 jobs in 2013. The change "shows how the financial crisis is hitting the City," the firm's CEO, Douglas McWilliams, said at the time.

Author: Gary Marshall

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