Data provided by The Financial Services Authority, or FSA, has highlighted the fact that suspensions and dismissals in the City of London have reached a five year high. The information was provided as part of a freedom of information request submitted by law firm Pinsent Masons and showed that 1,373 workers were sacked in 2012. Total job losses in the sector were up to 177,697. One specialist at Pinsent Masons has blamed the increased stringency of financial regulations that companies and employees must now adhere to.
The Freedom Of Information Act
Since 2000, members of the public and organisations have been allowed to request information that is held by public authorities. This has seen a lot of information come to light in a variety of sectors and industries, not least the financial sector. Not all requests are successful, especially if the provision of the information is deemed as being potentially dangerous to any group, but many requests have been fulfilled. One such request was made by law firm Pinsent Masons who requested information on the number of people to have left their financial posts in recent years.
The data, which was provided by the Financial Services Authority or FSA, shows that some 1,373 workers within the sector were dismissed in 2012. This represents a significant 76% increase from the previous year and is the highest since the darkest days of the financial crisis back in 2008.
Reasons For The Increase
A partner at Pinsent Masons, Helen Farr believes that many of these sackings are as a result of employers being a lot tighter over irregularities. Farr said that “firms are operating under increased scrutiny and as a result employers are imposing industry rules more strictly. FSA enforcement activity has clearly had an impact on firms’ willingness to tolerate wrong-doing.” She continued to say that the increase from 778 dismissals in 2011 means that the threat of enforcement and reputational damage has led many companies to take action swiftly.
Financial Sector Job Losses At Five Year High
A total 36,868 people lost their jobs in the sector in 2012. This figure included those that changed jobs as well as those that moved internally. It will also have included redundancies, sackings, and retirements but represents the largest number since 2008. It also means that a combined total of 177,697 people have been left out of work in the financial sector in these five years since the financial crisis really struck at the heart of the city.
About The Author
This article has been written by Richard for BCL Legal who are market leaders in legal recruitment. specialising in Solicitors jobs in London.