Finding a job in the new capital market
by John Schroy filed under Leadership, Bankers, Brokers, Fund Managers
The Crash of 2008 was the end to what I call, “the old capital markets”.
A new era is beginning, but form and detail are hidden in the mists of change. It may be a decade or so before new structures and directions are visible.
But before getting into the unpleasant chore of actually looking for a job, you should consider whether or not you even want to work in the new capital markets.
Warning: This is not a short article, but then, finding a new job is not always easy.
A different work environment
Historic events are unfolding in capital markets.
Hundreds of thousands will attempt to seek employment in a changing market. Some have been laid off as a consequence of institutional de-leveraging, bankruptcy, and the elimination of product lines.
Others, still employed, will be thrown onto the market soon enough, as the recession grinds on.
Students of finance and business, still in college, will soon be forced to consider whether to continue their current plans, marching forward to face stiff competition in smaller, perhaps less profitable financial fields, or whether it would be wise to re-direct their careers along a different path.
As the size of the market shrinks, due to de-leveraging and simplification of product lines, not everyone will find a job in “Post 2008 Wall Street”.
Hundreds of thousands unemployed in the financial sector
According to the Bureau of Economic Analysis, the number of people employed in the US finance and insurance industries peaked at 6.1 million in December 2006 and had fallen by 345,000 by January 2009.
However, many that are or will be unemployed by the contraction in the financial sector have no particular commitment to capital markets as a career path. There are many that work in human resources, building maintenance, clerical or secretarial positions, and similar “non-financial” jobs that can move to other sectors without discarding job skills or hard-earned professional credentials.
This article, however, is about those who have their educational background and job skills closely tied to financial markets and who would abandon professional qualifications by moving to a different sector of the economy.
It’s hard to say how many fall into this category, other than that it is far less than the number who will need to find new jobs as a result of contraction of the financial industry.
Financial markets may be shifting, but will not go away
Whatever the form the new capital market takes, people will continue to be gainfully employed in the field. Worldwide, the size of financial markets may even increase.
However, in certain cities, employment may be permanently reduced. College degrees that have currency in these markets will be accordingly devalued.
New York City, the traditional “Wall Street”, is an area that seems likely to be blighted for a long time. The net present value of Ivy League diplomas will suffer accordingly.
I, myself, have an Ivy League diploma that was useful decades ago in getting a first job on Wall Street. However, over the years, working in foreign markets, I found the credential to carry far less weight.