Financial services needs to ensure that it has a supply of new blood to ensure the industry continues to fulfil its potential

Despite the UK economy avoiding a triple-dip recession, new unemployment statistics paint a grim picture for young people, with experts predicting that unemployment will continue to slow the growth of the economy. The Office of National Statistics has reported that over 2.56 million people are out of work and this is forecast to increase to 2.6 million by 2014. Young people are worst hit, with 979,000 16 to 25 year olds currently seeking work. It was also reported that 900,000 job seekers have been out of work for more than a year.

The financial services sector has contributed to these unemployment figures by cutting thousands of jobs over recent years. That said, it is being reported that job vacancies rose in the first quarter of 2013 (up from 5,859 to 7,308 in the first quarter) compared to the same period last year, according to recruitment firm Morgan McKinley. Whilst companies continue to make redundancies, recruiters have recently seen an increase in employers hiring more compliance-related roles as a result of increasing regulation. These roles are in high demand given the strong regulatory drive across the sector.

The financial services industry is a key contributor to the UK economy and employment statistics. There are around 1.2 million staff in 34,000 workplaces, ranging from online car insurers to retail banking giants, from self-employed professional financial advisers to global investment banks. The financial services workforce is made up of 29 per cent employed in administration or secretarial roles, with approximately 30 per cent in associate professional and technical roles. The remaining 40 per cent are in managerial roles, including owners in private companies and self-employed roles.

Growth in UK financial services has generally been weak when compared to other countries, notably the United States. In addition, we have experienced a decline in staff turnover as fewer vacancies are available and people opt to stay with existing employers rather than take the risk of moving somewhere new.

A recent survey undertaken by Robert Half International highlighted some of the challenges we face, with 89 per cent of financial services executives highlighting the challenge of finding skilled financial services professionals. As a sector we have struggled to attract young people, and more so in recent times, with people choosing alternative career paths as a result of negative industry perceptions in the wake of the banking crisis. That makes it even more important for us to build a strong and healthy pipeline of talent, to restore the industry’s credibility and reputation.

Advertisements

About dbda
dbda is a corporate social responsibility consultancy embracing education and safety in the community. We are privileged to work with a large number of blue chip corporate clients, Government organisations, charitable bodies, Institutes and local authorities. We also have a network of schools, professional bodies, associations, universities and partners, with whom we regularly work in collaboration.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: