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

Our Work offers at eFinancialCareers are some of the most complete and market representative in the financial industry. We’ve looked at some of the trends we’ve seen over the last two years to give you an idea of ​​how the job market has performed since then, although it’s up to you to guess the future.

The graphs below show the evolution of the number of jobs posted globally by sector in eFinancialCareers since November 2020. The graphs are indexed, with November 2020 as 100. The main conclusion is that the most active job sectors in the financial services now are not growing. ; they are stuck.

Investment banking job offers (BREAST, capital markets) may appear to be on a roller coaster, but it’s tame compared to the wild swings of Private capital jobs. Investment banking jobs increased erratically between November 2020 and July 2022, but – worrisome for young investment bankers – Investment banking jobs have tumbled ever since. This could have something to do with the fact that bank income itself is down around 50% in 2022 vs. 2021.

Things could improve. Deutsche Bank, for example, told investors in its third-quarter earnings call that it expected a “best year” for investment banking in 2023, though it would be hard to do worse than 2022, and Bank of America has already announced that Wouldn’t Cut IB Jobs, Bloomberg reported.

Meanwhile, private equity hiring seems to follow seasonal patterns and fluctuate wildly, although its most recent fluctuations have reduced jobs compared to recent years. At the moment, PE jobs seem to be stuck at a low rate.

jobs in the central office they are less erratic than in investment banking, but they are not growing either. Only compliance jobs are currently more abundant than in November 2020. Although risk jobs they have been declining, they have not been as mediocre as tech jobs. maybe the people leave tech companies Won’t he get jobs in finance after all?

Offshoring remains a problem in major financial centers. William Wright, managing director of New Financial, a UK-based think tank, indicated in a research article that “Many companies…have relocated much of their support operations to countries like Poland, not because of Brexit, but because it’s so much cheaper than employing them in London, Edinburgh, Manchester.”

you might think that sales and trade jobs would be thriving now. After all, fixed income and commodity currency (FICC) traders in particular have made strongly in 2022. Actually, commercial jobs are also down compared to last year.

As the chart shows, FICC jobs have been on a downward trajectory throughout the period, although they have stalled at a low level in the second half of this year. Job offers in stocks have also fallen since July. Hedge fund jobs have been more stable, but are holding steady from last year.

Why aren’t more jobs being created? The revenue success of the FICC sector as a whole masks a variety of conditions in its constituent parts. Credit merchants, for example, are doing very poorly, with revenue down 36% year-over-year and on track for its worst year since 2012, according to Bloomberg. said. On the other hand, raw materials are making right. So are the macro tables: Deutsche’s fee revenue doubled in the third quarter, for example.

Stock trading jobs are also declining. The share selling and trading sector has had a flatter year overall, despite a 10% increase in equity income at Barclays in the first nine months.

The graphs above are based on global figures. There may be regional differences. In New York, for example, things are looking up. The New York State Comptroller report in the securities industry, which covers the world’s largest financial employer, Wall Street, estimates that the state’s securities industry added 1,600 jobs in 2022 (through September).

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Have a confidential story, tip or comment you’d like to share? Contact: Zeno.Toulon@efinancialcareers.com in the first instance.

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