A study released today suggests fund management jobs will grow faster than other financial services jobs in 2005.
The latest quarterly study by the Centre for Economic and Business Research (CEBR ) forecasts a 3.1% rise in fund management jobs in London during 2005. This compares to a 2.5% rise for corporate finance jobs, and a 2.2% rise in securities positions.
Andrij Halushka, author of the CEBR study, says fund management jobs are being driven by the growth of hedge funds: 'This is one of the only areas where it's possible to make money when stock markets aren't rising.'
By the end of 2005 he estimates all funds, including hedge funds, will employ 39,500 people in London. By comparison, 13,000 people are forecast to work in corporate finance, 79,500 are expected to work in securities roles (including sales, trading and the back office), and a further 75,000 are expected to work in professional services jobs related to the financial services industry.
Halushka arrived at his figures after careful scrutiny of the annual business enquiry and labour market study from the Office of National Statistics. 'It was a bit of a judgement call,' he admits.
Headhunters working with fund management clients confirm the sector is busy right now. Paul Ferrari, a consultant at Shepherd Little, says business is buoyant, but there is a lack of quality candidates. 'People seem more hesitant to move this year. A lot moved in the last couple of years and are wary of doing it again.'
Petra Rickmeyer, head of the financial services practice at search firm Hoggett Bowers, says fund managers are competing hard for staff. Global funds and specialist boutiques are the most active hirers, says Rickmeyer. Global firms are looking to close product gaps by hiring whole teams or merging small businesses into their group.