No one can argue that the U.S. financial sector played a defining role in the 2008 economic crisis, and the plethora of layoffs since suggests those risky finance types have gotten their comeuppance. But no. Unlike industries that had little to do with the collapse, the finance sector has actually increased its share of occupations and wages.
According to an analysis from The Atlantic’s Richard Florida, finance jobs made up 4.8% of all U.S. occupations in 2011, up from 4.4% in 2006. More surprising, the finance sector’s share of wages increased from 6.8% to 7.3% during the same period, despite the highly publicized trimming of Wall Street compensation over the last few years.
The average year-end compensation for finance employees increased from $60,000 in 2006 to $68,740 in 2011, according to Florida.
The analysis suggests two main conclusions. One: The purging of finance jobs is newsworthy, but perhaps not as significant as job cuts in other industries. And two: Banks, hedge funds and other financial firms are still big enough to cripple the economy with risky and speculative maneuvers.
“Although the crisis has not run its full course, we find that instead of contracting, the financial sector overall has only continued to expand since the deep economic and financial crisis,” Florida wrote.
The Royal Bank of Canada has agreed to acquire the Canadian assets of struggling auto lender Ally Financial, which needs capital to repay a U.S. government bailout.
Goldman Sachs has internally discussed spinning off its commodities-trading business but won’t formally consider the plan until new regulations go into effect. Morgan Stanley, meanwhile, is reportedly contemplating selling off part of its commodities business to a foreign entity.
High-frequency trading provides several unique benefits and does not increase the volatility of financial markets, according to a new U.K. study, which suggests regulators use caution when considering strict HFT rules.
Tom Steyer, the 55-year-old founder of hedge fund Farallon Capital, is retiring, ceding control of the firm to his long-time deputy Andrew Spokes.
The Bank of England is on the lookout for a chief operating officer, a new role created to allow the Governor to concentrate on creating policy.
K.C. Baer and Christopher Yanney, two veteran bankers whose careers have closely mirrored each other, are joining forces to launch a new high-yield hedge fund. New York-based CKC Capital is looking to raise $250 million for a January launch.
Want to kill it in the business world? The key is relationship-building, a skill apparently born at an early age. A new study finds that those deemed to be the most popular in high school make, on average, 10% more 40 years after graduating than do their classmates.
Julie Richardson, the 49-year-old managing director of Providence Equity Partners, is leaving her full-time role to pursue non-profit interests. She will remain with the firm as a senior advisor.
Buzz Around the Office
A 28-year-old Syracuse man was arrested on grand larceny charges after demanding $20,000 from a bank teller. Arthur Bundrage walked away scot free with the cash but was later arrested when he returned to the scene to complain about being shortchanged.
List of the Day: Resume Mistakes
Resume mistakes often involve adding too much information, rather than too little. Here are a few regular examples.
- Subjective text. You should be providing facts, not unsubstantiated self-praise.
- Fancy fonts. It’s a resume, not a poster board.
- “Skills” that aren’t really skills. Knowing how to use Word isn’t a differentiator.