The truth about the finance job market at the end of 2022

Our job listings at eFinancialCareers are the most comprehensive and market-represented in the financial industry. We’ve analyzed some of the trends we’ve seen over the past two years to give you an idea of ​​how the job market has performed since then — though predicting the future is up to you.

The graph below shows the evolution of the number of jobs posted on eFinancialCareers across industries worldwide since November 2020. Charts indexed as of 100 in November 2020. The main conclusion is that the most active jobs in financial services are not growing right now; they are stagnant.

Job vacancies in investment banking (M&A, capital markets) can seem like a rollercoaster ride, but compared to the wild swings of private equity jobs, it’s mild. Growth in investment banking jobs was erratic between November 2020 and July 2022, but worrying for younger investment bankers, investment banking jobs have plummeted since then.This may have something to do with the bank revenue itself being Down Compared with 2021, 2022 will be reduced by about 50%.

Things might get better. For example, Deutsche Bank told investors on its third-quarter earnings call that it expects 2023 to be a “better year” for investment banking — though it’s hard to do worse than 2022 — while Bank of America has already Announced no IB job cuts, Bloomberg reported.

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Meanwhile, private equity hiring appears to follow a seasonal pattern and has been volatile, although recent volatility has resulted in fewer jobs than in past years. Right now, private equity jobs seem to be on the low end.

Middle office jobs aren’t as volatile as investment banking, but they aren’t growing either. Only compliance now has more work than it did in November 2020. While risk jobs have been declining, they are not nearly as lackluster as technology jobs. Maybe people leaving tech companies can’t find finance jobs after all?

Offshoring remains a problem in major financial centres. William Wright, managing director of UK-based think tank New Financial, noted in a research paper that “many companies … have outsourced much of their support to countries such as Poland – not because of Brexit, but because It’s because it’s a lot cheaper than hiring them in London, Edinburgh, Manchester.”

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You might think sales and trade jobs would be booming now. After all, fixed-income currency and commodity (FICC) traders are in particularly strong territory in 2022. In fact, there were also fewer trading jobs compared to last year.

As the chart shows, FICC employment has been on a downward trend throughout the period, although it has stabilized at lower levels in the second half of the year. Equity job vacancies have also fallen since July. Hedge fund jobs are more stable, but unchanged from last year.

Why aren’t more jobs created? The revenues of the FICC sector as a whole successfully mask the various conditions of its constituent parts. Credit traders, for example, are faring badly, with revenue down 36% year-over-year, putting them on track for their worst year since 2012, according to Bloomberg. Commodities, on the other hand, are doing well. The same is true for the macro sector — for example, Deutsche Bank’s interest rate income doubled in the third quarter.

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Stock trading jobs are also down. While Barclays’ equities revenue rose 10% in the first nine months, the equities sales and trading division was generally flat.

The chart above is based on global data. Regional differences may exist. In New York, for example, things are looking up. The New York State Comptroller’s report on the securities industry — which covers Wall Street, the world’s largest financial employer — estimated that the state’s securities industry added 1,600 jobs in 2022 (as of September).

Click here to create a profile on eFinancialCareers. Let recruiters see your positions in finance and technology.

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