Is the economic recovery over even before salaries had a chance to rise?

Is the economic recovery over even before salaries had a chance to rise?


Julian Parker

Throughout the last 12 months there has been a genuine collective optimistic look at the recovery of the European economy, but in the last reports there now seems to be a growing fear that the Eurozone is again set to fall into a downward spiral.

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With most of the European stock markets falling due to poor monthly reports, worsening forecasts and the value of oil dropping to its lowest points since 2012. We’ve all seen the stock markets and profits rise but following over 5 years of stagnant salary levels in the city, surely it can’t be over before salaries have had their chance to grow?

When looking into some of the latest figures you will see that UK goods exports fell by £700m this month due to the lack of growth in the Eurozone, however if you look at other figures there is a much happier story to be read. The financial services has grown at its rate since 2007 with 52% of financial services businesses reporting an increases in their balance sheets over the last quarter, whilst hiring has also increased by 17% over the same period. This has been echoed by industry figures predicting promising times ahead for the job market within the financial services with reports of hiring growth set to continue next year.

Whilst poor economic forecasts from the Eurozone are bound to impact on all members including the UK from the trends that we have seen this year within the industry things are still looking positive. Employers are already struggling to attract the top talent that is lacking motivation to move while there are no significant financial carrots to dangle and faltering economic growth stats are only going to encourage them to hunker down and wait for the next dawn. Many firms are already experiencing bottlenecks in promotions created by a lack a liquidity in the candidate market so let’s hope that the forecasts are accurate and the return to a healthier market for both candidates and employers can continue long past 2014 leading to more open vacancies with a larger pool of active candidates. Maybe, just maybe this will give the kick all our salaries need.