Forex and borrowing rate exchanges staffing increases due to the ongoing economic crisis in Greece and Spain.
Current figures indicate that the rush by investors to protect their businesses against risks that may be triggered by the crumple of the monetary union caused an increase in recruitment in the Square Mile the previous month.
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City job market also indicated an increase in jobs after it recorded 4,320 new jobs last month. According to a report from Astbury Marsden, this was a 25% increase since August 2011.
The latest increase in jobs is largely being attributed to the current Forex and borrowing rate exchanges on fears that the Euro might collapse. The expected fall out of Greece from the Euro and the ongoing crisis in Spain’s banking system have caused fears among investors. This has therefore forced some banks such as Barclays and Royal Bank to add staff.
This improvement in activity comes at a time when the Euro is recording a drop against the dollar since 2010. Mark Cameron, one of the Astbury Marsden’s chief operating officers, noted that the volumes around these regions appear to have improved in the last few years. The current risk to the single currency appears to be a threat that every business should hedge against. This has in turn caused a major surge in activities. Now that institution investors are pessimistic about the single currency, Euro sales teams have surely been taking home their stay. Essentially, this instability has created revenues for institutions and brokers.
Mr. Cameron however noted that he was not ready to celebrate the surge since it is still lower than what was recorded the same month last year. Also reports from CEBR indicate that there about 100,000 less workers in the city than it was in 2007.
Cameron also noted that the current improvement in jobs market may continue until June. After that, it will become quite trick to forecast the direction that the City jobs market will be headed especially since Europe’s future was so uncertain.
Cameron’s comments came at a time when Cyprus Central Bank’s head, Panicos Demetriades warns that the country is likely to request European aid to support one of its major financial institutions with 1.8 billion euros.
Speaking in an interview with the press, Demetriades added that it not easy to identify any other source of recapitalization apart from Europe.