, Singapore

You're fired: Banks planning to cut headcount quadruples to 12%

The banking & financial services sector's hiring expectations dropped sharply from 59% to 34%.

According to a survey by recruitment firm Hudson, hiring expectations have fallen in all the sectors surveyed over the past year. This quarter’s overall figure of 42% compares with 61% in Q2 2011. Expectations then were just one percent below their peak for over a decade and started to fall sharply in the following quarter, as Europe’s economic problems became more critical. 

Here's more from Hudson:

The Banking & Financial Services sector reports the steepest fall in expectations year-on-year: this quarter’s figure of 34% is sharply down from 59% a year earlier. The proportion of respondents planning to reduce headcount has quadrupled, from 3% to 12%. The second quarter is typically a busy hiring period after bonus payouts, so the latest figures emphasise the steep decline in recruitment. Some new hiring is still taking place however, for risk, compliance and legal roles.

Expectations have also fallen sharply among employers in the Healthcare & Life Sciences sector. Two-thirds (67%) of respondents said they would hire more staff in Q2 2011, compared with just 44% this quarter. As noted, companies that have restructured their operations are now filling vacancies from internal resources. New hiring is still taking place for quality assurance, compliance, clinical and medical professionals.

The smallest fall in expectations year-on-year is reported by the IT&T sector. At 56%, expectations are still high in this industry, though lower than the 65% reported in Q2 2011. Despite global projections of slower economic growth, the outlook for this sector remains stable.3 MNCs have continued to invest in Singapore and a large number of foreign start-ups are setting up base here4, creating new job opportunities.

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