Credit crunch threatens Edinburgh life and pensions jobs

Published on Thursday 31 January 2008 20:38

EDINBURGH'S life and pensions sector is likely to bear the brunt of job losses which are predicted to result from the credit crunch, a new report has warned.

The annual study of industry by recruitment specialist Joslin Rowe, supported by Scottish Enterprise, showed that 9 per cent of firms in Scotland expect to cut headcount – six percentage points higher than 2007 but broadly in line with the survey results over the past eight years.

And despite more than half of Scotland's financial services employers signalling their intention to recruit in 2008, confidence in the year ahead has dipped to levels not seen since the end of 2002.

While 76 per cent of firms described their company's level of business confidence for 2008 as "optimistic" or "very optimistic", the figure is the lowest level recorded since 2003. A total of 3 per cent expressed a pessimistic outlook.

More than half of firms – 55 per cent – expect to increase their permanent employee numbers in 2008.

The number is slightly down on last year's figure of 59 per cent and way below the 82 per cent in 2006.

Margaret Dyer, director of Joslin Rowe Scotland, said: "If Scotland is to be a strong player, on a big stage within financial services, then we have to shoulder our share of global fluctuations."

She added: "Our survey was conducted in November during the height of the subprime fall out and I wonder what the results would show if we were to take the temperature of the market this spring? So we shouldn't sound the death knell yet."

Cathy Malone of the Scottish Enterprise financial services team added: "Financial services continues to be a real Scottish success story and the vast majority of firms are still optimistic about the year ahead, despite tougher trading conditions."

The survey added that most financial services workers would pocket a pay rise of between 3 and 5 per cent in 2008, while employees working in certain jobs – such as accountants, settlements professionals and those in investment operations – can expect a rise of 15 per cent to 20 per cent.