Employment outlook for finance sector positive despite impact of disruption

From

Neil McDonald

Despite the impact of digital disruption and a candidate shortage, the employment outlook in the Finance, Insurance and Real Estate sector remains cautiously optimistic.

This is according to the latest ManpowerGroup Employment Outlook Survey, released today, which shows twelve per cent of employers in this sector intend to increase hiring in the coming quarter, while eighty-three per cent will make no changes to their hiring plans, and just four per cent plan to decrease.

The resulting Net Employment Outlook (NEO)[1] is +7%, which has seen a slight decrease of four percentage points since Q1 2017, and is down six percentage points since this time last year.

Neil McDonald, Director at Marks Sattin, an Experis company forming part of ManpowerGroup, said that while the outlook remained modest, employers in the sector who anticipate change and invest in the skills needed to drive transformation will succeed.

“The current employment outlook for Finance, Insurance and Real Estate provides employers with a solid base to build on, as long as they remain nimble and can adapt to broader changes being driven by technology and customer-demands.

“In this ever-changing environment, having the right talent has never been more important. From a skills perspective, employers need to think about hiring to drive business transformation, for example sourcing the right IT talentand upskilling current employees’ so they can continue to adapt and perform.

“Organisations that can blend the right combination of people, skills and technology are those that will win.”

Mr McDonald noted that with the finance sector currently facing a talent shortage, there were clear opportunities for candidates who will be sought after to fill critical roles.

“There is increased opportunity for skilled employees in this sector as businesses seek to hire and retain the best talent. Even in existing roles, employees should be considering options for broadening their skills to future-proof their employability. This will not only deliver greater job satisfaction, it will ensure they stand out in an increasingly competitive market.”

Mr McDonald concluded by saying that large digital projects coupled with a candidate shortage was having an impact on hiring trends in the sector.

“We are seeing a shift from permanent recruitment to part time and project-based roles in the finance industry. The reason for this is three-fold – broader economic uncertainty; large transformation projects; and a lack of skilled candidates in this field. This trend will likely continue in the short-medium term.”

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[1] The Net Employment Outlook is calculated by subtracting the percentage of employers anticipating a decrease in hiring activity from the percentage of employers anticipating an increase in employment. Seasonal adjustment is then applied to the data.

 

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