London takes lion's share of new IT jobs
Bailed out banks still hiring
Since the start of the recession London and the South East of England have created close to two thirds (64 per cent) of all new IT jobs in Blighty, up from 58 per cent before the economy dipped.
According to research carried out by ReThink Recruitment, the region shows that it is "bouncing back strongly from the recession" despite the fact that many predicted that London and the South East would suffer a huge blow because of the number of IT jobs in the banking sector.
“London has a high concentration of financial services firms, which are heavy users of IT skills. Many of them responded to the downturn by cutting their IT departments to the bone," said ReThink Recruitment director Michael Bennett.
"As businesses levels have picked up, many have found themselves understaffed and have had to replace a lot of the skills that were shed during the recession.”
He added that the financial downturn led to more investment in compliance and risk management systems, particularly in the banking sector. "We have seen a substantial increase in demand for candidates skilled in these areas,” he said.
“The wave of mergers between financial institutions brought about by the credit crunch has fuelled demand for IT candidates in London and the South East to handle post M&A integration of banking IT systems.”
Bennett said the public sector had taken a hit during the recession by pointing out that budgets had been squeezed.
"Regions outside London and the South East tend to be much more reliant on the public sector and with hiring freezes now implemented this may stifle the creation of IT jobs,” he said.
The only other UK region to see a jump in IT recruitment since the recession started in June 2008 was Yorkshire and Humberside, despite several local high street banks laying people off in the area.
The region didn't just concentrate its IT efforts on banking, however. It also invested heavily in ecommerce, had Siemens set up home there and benefited from retailers shifting parts of their biz online.
Yorkshire and Humberside claimed 5.3 per cent of total new jobs in June 2008 compared to 6.2 per cent last month. ®
Must be a different London from where I work
I'm glad to know the latest round of IT job cuts at the bank where I work (hence being anonymous) are simply a figment of my imagination, as are the job cuts at other banks where friends work. It's good to know that while our imaginary job cuts may result in us being out looking for new work the same banks who are laying off hundred of IT staff will be hiring us shortly.
What are the regional statistics for job losses?
If London lost the lion's share of jobs in the first place, then it's good to see them being replaced. But many affected financial institutions were based elsewhere, such as RBS, B&B, HBOS and Northern Rock. Are these lost jobs also being replaced or is there a net movement of work towards the South East, adding to pressure on local infrastructure, while leaving behind an economic wasteland?
With the coalition government proposing massive cuts across public services, are there going to be any jobs left in the regions?
I work for RBS in London, my office is pretty much IT only and has about 1000 people in it. There are quite a few other offices, some mixed staff, some dedicated to non-IT. All banks that operate in the UK have some presence in London, almost always, if not actually always, with fairly large IT staffing.
there'll be enough available soon.
Probably going to start looking for a new place, leaving this wreck behind where marketing idiots are, as usual, ruining things...
@Must be a different London from where I work
Nope just 'government statistics'
1Million jobs lost, 3 new jobs created, 2of them in London = London creates 2/3 of new jobs!