While those at Bear Stearns who've lost their positions are flooding Wall Street with resumes daily, federal data for the finance jobs in NYC for the 12 months through February paint a picture of an industry faring not too badly.
But others know better. It's not just former chairmen of the Federal Reserve who are lambasting Alan Greenspan for the interest rate debacle they say he set in motion. Recruiters and economists are brusquely speaking of worse days to come.
"Relatively to the country, New York City is not doing badly," says Emmanuel Egbe, a business and economics professor at Brooklyn's Medgar Evans College, speaking with the New York Post. Indeed, for the trailing 12 months through February, a scant 2,300 financial sector jobs were cut from businesses in NYC's five boroughs, whereas the leisure and hospitality industry was lost 16,000 jobs. At this point, jobs are truly holding steady, according to federal data. The government has 8.49 million workers in its books for New York, as of the latest data.
"The unemployment rate is not that high -- yet," Professor Egbe said. "Compared to a year ago, the rate of job growth is low, and has begun to slow down. That provides an indication that we may be going toward a recession."
Ever since the March 16 buy-out offer of Bear by JPMorgan Chase, Michael Karp, CEO of the financial recruitment and consulting firm Options Group, said 10 to 15 resumes a day from Bear employees trickle in from around the world. "All investment banks and commercial banks have interviewed people from the investment bank in Bear Stearns," Karp told Reuters.
On April 4, JPMorgan announced the first top-level management jobs, but of the 26 executives named to positions in the investment banking and trading division, only five are from Bear.
Wall Street has seen tens of thousands of job cuts in recent months as the global credit crunch spreads and the U.S. economy slows, but there are still companies who are on the lookout for top talent.
Selectively we are seeing demand from hedge funds ... who are looking for private equity-type bankers to come in and help them grow their businesses," Karp said. Smaller investment banks and boutique banks are looking for people selectively."
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.