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Jobs have been slowing in this sector for several years. Areas such as asset management positions have nearly halved as asset values have
plummeted across the globe. Finance operations that relied on lending really struggled and jobs in this sub-sector fell 25% over the GFC.
Some areas held up quite well, including front line staff in the major banks. Despite the difficult times, there are strong signs that the Finance
Sector is coming back to life after the GFC. For example, Macquarie Bank sold $1.2 billion in residential mortgage backed securities (RMBS)
including some with low-doc loans. In fact, this year commercial issuers have sold nearly $5 billion in RBMS. Such bonds that include the less
secure low doc loans have not been seen since the GFC started. Health Insurance funds have also grown jobs (+2.3%) and Superannuation
funds have been fairly steady, even though asset values fell during the GFC. There are some strong areas of job demand, with reports that a
need for analysts and investment bankers is coming back strongly after the GFC.
This sector is still shedding full time jobs (-0.2%), but the rate of decline has slowed. Part time jobs have also fallen in this sector, with jobs
down 1.5%. At the height of the GFC, part time jobs were falling at double-digit rates, whereas full time jobs only fell slightly indicating that
banks held on to their full time staff as much as possible during the crisis.
The recent jobs performance has varied by State. Sydney is still the finance capital of Australia and jobs have been falling there. Both full time
and part time jobs are falling in NSW as the industry adjusts its cost base. Overall, though, there are now more full time jobs in NSW than three
years ago. With a stronger economy, Victoria has been increasing jobs in this sector in both full time and part time positions. The Finance
Sector in Queensland has been struggling --- a number of major finance players have folded, the main bank Suncorp Metway has reduced job
numbers, and both full time and part time positions are down. After a major adjustment in costs, with part time jobs growing strongly at the
expense of full time jobs, SA has now started to grow full time jobs again. WA is still shedding full time jobs, but the part time sector is growing
Business confidence has really turned around in this sector, with confidence rising from -24.2 in December 08 to +10.5 in December 09.
Improved economic conditions, stability in the Finance Sector and this improved business confidence, means that jobs are forecast to grow,
rising to 0.3% by November 10. Already, some sub-sectors are improving considerably, with jobs for financial brokers up 8.1%.
Now the deep fear of the GFC has eased, better times are forecast
Housing Cap Ex
Source: ABS/EMDA Model 2010
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