Major job losses in the Irish financial sector may be only weeks away according to Richard Curran. Stock and mortgage brokers are reckoned to be the first to react. 70% of stockbroker costs are in staff costs but income is collapsing with both volumes and values way down. Private share dealing is reckoned to be 40% down in volume alone. Mortgage brokers are also reckoned to be in line for major job losses with fees cut and staff levels reflecting 2006 rather than 2008 levels of business. The retail banking sector at 32k jobs is reckoned to be better able to withstand the downturn but there may be losses from the 10k jobs at the ISFC.
I hope everyone has their rainy day fund topped up. I know I do.
Spoke with a member of staff in a large Irish bank the other day, apparently not only is there a hiring freeze but there is also a promotions freeze. No word on job cuts or anything but apparently staff are feeling quite mutinous and are spending most of their day surfing IrishJobs.ie. Given that most banking work is mundane and repetitive, most people hack away at their current job safe in the knowledge that if they stick with it and play their cards right, they will eventually be promoted to something better and/or more interesting. Take that away and things start looking pretty bleak.
That does not quite ring true Kerry, Davy’s are currently advertising 12 jobs to be filled. Far from shedding staff, they are actually hiring.
EDIT:I must qualify the above by saying that AIB abandoned their ‘graduate programme’ in January this year. They would usually hire about 140 graduates every year, and they spent 2 seperate weeks in November carrying out aptitude tests, interviews etc. Candidates were narrowed down to 500 with final interviews due to take place in late Jan 08. Then they pulled the plug on the whole thing
Lots of companies put out ads with no intention of hiring, so the opposition still think things are rosy over there.
Oh right! Jesus the amount of cospiracy theorists on this forum is scary! If they let 12 people go you would accept that bit of info instantly as proof positive that we are all fucked! C’mon lets have a bit of cop on pleeeaaasse!
The impress-the-opposition thoery is a bit far-fetched, but it’s not unheard of for companies to advertise provisional roles, subject to later approval by senior mgmt. Especially where a company is hoping to ride out a short blip in their business.
The danger is that the blip isn’t short.
Far fetched??? Its fuckin ridiculous, it is 12 jobs, not 1/2! The VI’s regularly get accused of spin, but Whizzbang could give the VI’s a run for their money on that one anyday!
I am only quoting the article I am not making any claims as to the accuracy or not of its contents.
The article quotes one leading banker as stating that there is an unrealistic view among bankers of all this being just a temporary thing and have not cut staffing as a result.
I don’t know about lots of companies doing this, but, I do know that a lot of the jobs advertised on Irishjobs.ie do not exist, they are generally agencies harvesting CV’s to pimp to companies - watch as the same job specifications keep rotating every few weeks.
I know for a fact that, recruiters advertise jobs they dont have, with the intent of CV harvesting. One small recruiter told me he had 2 million CVs on his file server. Its currently against the law to retain someones personal details for more than 2 years after your dealings with them, so I presume the recruiters are breaching the Data Protection Act, by doing this.
I would have thought that the big hit to the Irish stockbrokers took place last year when a lot of their private clients suffered large losses on CFDs when the Irish market plunged. Even if they do start laying people off these firms are generally quite small so industry-wide job losses would still not amount to much.
In London the institutional equity divisions of the banks and brokers have have enjoyed buoyant trading volumes until fairly recently.
However, if the banks start laying off people it would be hard to reconcile their optimistic PR releases with their actions.
Few investors really have any faith in the outlook statements of the Irish (and UK) banks. For almost a decade the Irish banks have painted an optimistic economic picture but even when the slowdown became obvious their mantra never really changed.
And I know for a fact that these jobs exist!Check the link Stingy, it is not to a recruiting agency, it is a link directly to Davy’s vacances section
You beat me to it.
I know too many people who have lost vast quantities of cash due to their stockbrokers advising them on CFDs.
One in particular has had to return to work, such were his losses.
Quite sad actually.
It must be remembered that CFDs for retail investors are, (as far as im aware), illegal in the states due to their continuing ability to lose clients money.
It constantly surprises me how many stockbroking firms can advise their clients to pile into a stock and, when they lose money, claim no liability at all.
Breaks my heart.
On the job thing I know for a fact that a major multi-national company specialising in interweb search advertise jobs they do not intend filling all the time.
Yikes, my comment kicked up a bit of a ruckus. All I’m saying I’ve come across companies who always have positions up on their web site even when they are not hiring. If it is to harvest CVs or to impress the Joneses I’m not sure.
My company has around 4/5 jobs up on irishjobs.ie. At least 2/3 of them aren’t actually open. At least I hope they are not, as one of them is mine. But they’re always interested in getting CVs of people in our area.
Maybe all you conspiracy theorists, naysayers and prophets are placing too much reliance on companies and people being logical - in many cases I suspect the left hand does not know what the right hand is doing. Departments will happily roll along expanding based on last year’s budget and empire-builders will always try to increase head-count, until the day the seagull-squad flies in and they get religion and convert to hatchet mode.
It would be interesting to hear if the other graduate programmes (apart from AIB’s) are active this year. I know some kids who got on to Morgan-Stanley’s (or JP Morgan?) and ummm Fidelity I think over the last couple of years - they seem to be fairly optimistic right now (both are in London). Mind you I am reminded of my brother-in-liaw’s response when I asked if his daughter was concerned about her job in Iona a few years back - “Oh not at all” he says “sure isn’t her job permanent?”.
I was in an American investment bank during the 2001 recession. We had a firm wide hiring freeze but my department would continue to bring in people in through the recruitment process. We would do three or four rounds of interviews and then hope that we would get sign off for the position from the powers that be. It was very embarassing to go back and explain to a candidate that we could not actually offer the position. We were not harvesting CV’s or trying to gain information from the candidates, we were short people and realy wanted the candidates but could not get the budget. We were never given a clear no until the last minute.