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Job Losses in Financial Industry Have Far-Reaching Impacts

Posted by: Lisa Nichols | Mar 24,2008

According to the New York Times, jobs in the financial industry made up 1/3 of all wages earned in the city last year. Thousands of Bear Stearns employees are expected to lose their jobs in the coming months. It’s more of the domino effect- or the boulder effect- as the economic downswing continues to spiral, affecting more people. And companies that rely on the financial industry by providing them with services or goods are reevaluating their need to hire new people- and reevaluating their need to keep their existing staff. Companies affected by the Wall Street job cuts include food services, drivers for car services and a number of other types of service providers. It’s easy to see the far-reaching impacts of financial industry job losses, and it’s been less than a year since they started.

 

More Job Losses Expected in the Financial Industry

 

The job losses started last summer, and more than 34,000 people in the financial industry have seen their jobs go away in the last eight months. Many people are exercising caution with big purchases until they learn more about how the job losses will affect their own jobs. Citigroup is expected to cut 6,000 jobs in the coming months, and Lehman Brothers and Goldman Sachs both plan significant job cuts in the coming months.

 

Long-Term Effects of Wall Street Job Cuts

 

In an article on Bloomberg.com, a partner from the Battalia Winston International executive search firm says that they anticipate the job cuts will jump to more than 100,000 over the next few years. As companies continue to move slowly on new acquisitions and large-scale projects, more and more non-financial industry jobs may be lost. It’s more difficult to track and analyze, but it’s anticipated that many companies will also shy away from hiring new employees over the next few years. 

 

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