Credit crunch begins to hit the professions

29 July 2008

After months of fluctuating and conflicting employment trends, could it be that the first effects of the credit crunch are finally being felt?

After months of fluctuating and conflicting employment trends, could it be that the first effects of the credit crunch are finally being felt? T

he bad news in the construction industry last month (when Persimmons, Taylor Wimpey and Barratt announced combined loses of 3,900 staff), seems to be spreading. Information company Thomson Reuters last month found the economic slowdown is halting recruitment among professional services firms such as law, accountancy and commercial property.

Research it conducted reveals 48% of the UK's top accountancy, law and property agents will not be increasing headcount over the next year, with 8% saying they actually intend to reduce it.

Andy Eddleston, commercial manager at Thomson Reuters company cvmail, says: "These companies have been hit by the slower M&A activity and corporate finance work brought on by the lack of credit in the marketplace." There is a small crumb of comfort, though. "Lawyers are expecting more litigation work to come from the credit crunch," he adds, "while accountants are likely to deal with more rescue and recovery work."

Morgan McKinley's London Employment Monitor supports the research, showing the number of new job vacancies in London's financial services sector fell 17% during May 2008 compared to May 2007