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The current credit global crisis could cost the UK’s financial services industry up to 11,000 jobs, as consumer and business confidence rapidly declines, warns the CBI.
Worryingly for financial sector workers the survey also highlighted the number of firms that had reduced their workforce over the first three months of the year outnumbered those who increased their compliment by 25 per cent - the highest numbers of jobs lost since March 2003. Worse news still is that over the first three months of the 2008/2009 financial year, companies anticipating reducing staff levels outnumber those expecting to increase them by 33 percent, representing a loss of almost 11,000 jobs in the sector.
Particularly highlighted in the survey were securities trading companies and UK life assurance firms, with both markets convinced that the global credit crisis would significantly affect their sale and revenue growth. But, even though life insurance companies were pessimistic, firms in the general insurance sector felt they would be least affected by impaired investments.
Seems, on the good side, that the credit crisis is not going to end the financial system entirely. Some had predicted some really bad things. It looks like it’s bad, but not that bad.
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