The number of advertised financial planning industry roles has taken a hit amid the economic downturn, falling 45 per cent over the last three months, accord_ ing to the latest data from ejobs Recruitment.
The data showed an unparalleled 62 per cent drop in financial planning jobs advertised over the year to Jan_ uary 2009 compared to the year to January 2008.
“Industry jobs have not only fallen into the doldrums, they have actually dug a big hole at the bottom in the hope of waiting out the economic and financial storm overhead,” said ejobs managing director and financial planning recruitment manager Trevor Punnett.
The Queensland, South Australian and Western Aus_ tralian financial planning job markets all recorded a fall in the most recent data, while NSW/ACT recovered slightly in January following a 49 per cent fall in Decem_ ber last year. The Victorian job market also recovered slightly in January, the data showed.
Despite job numbers traditionally picking up in Jan_ uary, Queensland fell 23 per cent on top of a 33 per cent drop in December, while Western Australia saw a 24 per cent drop, also on top of a 33 per cent fall.
The effect is being felt in both regional and city districts, with no area being immune from the economic and financial downturn.
“Regional advisers would be in the same position as CBD advis_ ers,” Punnett said.
“Everyone’s batten_ ing down the hatches.”
Punnett said the most affected groups are the newer entrants to the industry and those in planning support roles.
“We are seeing per_ haps twice as many paraplanner and client service candidates compared to say four to five months ago,” he said.
The hardest hit have been recent PS 146 graduates, who are struggling to obtain their first industry role.
“The newbies coming up are going to find it very hard to get in,” Punnett said.
The softening in the employment market is also being compound_ ed by increasing num_ bers of financial plan_ ning staff being let go, with Punnett saying his firm is “interview_ ing more and more candidates who have been retrenched”.
According to the ejobs data, some bou_ tique financial planning groups are still looking for staff. But for those few new positions available, employers can now afford to be more selective in their choices, with an abun_ dance of applicants per role advertised, Punnett said.
It is also expected that salaries will fall for both financial planners and paraplanners.
“We are seeing salaries [fall] in a down_ ward spiral as a result — paraplanner roles by between $5,000 and $10,000.”
While the current employment market is challenging, Punnett said it’s possible the number of roles on offer could pick up dur_ ing February and March, which are traditionally busier months than November and December.
“There will be more jobs, but there’ll still be less than there were a year ago,” he said.
“I think it will take a long time É probably a year or 18 months before the slack is taken up and people really start recruiting in earnest, providing the markets do indeed turn upwards.”
