When the latest unemployment numbers were released, it showed an unexpected drop in unemployment. The unemployment rate fell to 8.6 percent; experts were predicting that the rate would remain at 9.0 percent. There were 120,000 new jobs added in November, many of which were in the professional and business services industries.
Unfortunately, this is not enough of a positive change for Wall Street.
A report out of New York cites that 10,000 Wall Street jobs are in danger in 2012. This translates into even higher joblessness outside of Wall Street. For every job gained or lost in the financial industry, two jobs are created or lost in other New York industries.
This gloomy forecast is based on the fact that many investment banks have incurred trading losses due to the declining market conditions, and will be reporting third quarter losses. Goldman Sachs reported that it may have to cut 1,000 jobs.
For those in the financial industry, the advice is “do not panic.” Retail banks are doing fine, and are not expecting to have to cut jobs or declare losses. There will still be plenty of jobs available, but the job market may become even more competitive.
Here are a few tips for finding a job in the financial industry right now and in the coming months:
Polish up your resume. If the job market tightens, then companies will be looking for highly experienced professionals. Make sure your resume highlights your talents, skills, and accomplishments. Consider a professional resume writer to make the most of your opportunities.
Take some classes. Consider enrolling in an executive MBA program or other online business courses. You might even think about a course in financial modeling. Especially, if you are not currently employed, this is a great investment of your time and will show employers you take the initiative.
Consider an internship. While there are some paid internships, even an unpaid one will help you get your foot in the door at a firm that may eventually want to hire you on a full time basis. If you really are good at what you do, then just being there every day will give you the opportunity to make a difference in the firm and become part of their success.
Get licensed. If you are lacking a particular license (securities, insurance, etc.) now is a great time to study for and take that exam.
About the Author:
Debra Wheatman, CPRW, CPCC, is a Professional Resume Writer and Career Coach with more than 18 years experience working with professionals in finance, management consulting, legal, and technology.
Trade The Markets - a LIVE trading room think-tank
With tighter regulations on the horizon, less-than-stellar 2011 returns, calls to end the treatment of hedge fund profits as capital gains, uncertain markets, the European debt crisis and more, it isn’t easy good news in the hedge fund job sector these days.
But hey, you can get enough gloom-and-doom from other sources. It’s our job to bring you a few bright spots, and there are some.
From the Connecticut Post comes word that wealthiest endowments are using hedge funds to outperform their smaller cousins by a sizeable 2.5 percent.
Achieving this alpha is mostly a result of a commitment to due diligence, according to the Greenwich Roundtable, an investor group that published the research. Naturally the larger endowment funds and wealthier family offices have the money available to hire specialists who understand the complexities of hedge funds, and can pick winning managers.
University endowments with $1 billion or more earned an average of 5.8 percent on their alternative investments over 10 years. While endowments with $25 to $50 million had to settle for an average return of 3.3 percent.
Then there’s good news on a story we’ve reported on before. The new website BlueChipCareer.com continues to offer mentoring and job interview guidance from experienced veterans in the industry to those seeking a hedge fund job (and other financial positions). They are getting the word out just before the holidays for those looking to ramp up their job search in 2012.
“I wish I had a resource like Blue Chip Career earlier in my career,” said one of the mentors, Charlie Trisiripisal, a Partner at a New York hedge fund, which he co-founded. “Talking to someone with life experience is 10 times better than what a book will teach you about the interview process or breaking into a specific industry.”
And finally, the folks at JP Morgan suggest that despite the headlines, hedge funds get their equity bets right more often than wrong. Nikolaos Panigirtzoglou and Matthew Lehmann, in the global asset allocation and alternative investments group at JP Morgan, tested the performance of three hedge fund position indicators to gauge the success rate of their market calls.
The three indicators were debit balances in margin accounts at New York Stock Exchange (NYSE) member companies; rolling 21-day beta of macro hedge fund returns to the S&P 500; and aggregate net speculative positions in ‘risky’ assets relative to ’safe’ assets derived from Commodity Futures Trading Commission (CFTC) data.
Based on the data, hedge funds get their positioning right more often than wrong, and that it is more profitable overall to follow hedge funds, rather than go against them. You can see a more detailed explanation of their analysis in a Hedge Funds Review post.
How about you? Are you overwhelmed by the negativity gripping the industry right now? Or seeing some bright spots on the horizon? Add your comments below.
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