Empty school desks point to exodus of expatriates

Bronwyn Thorburn, head of admissions at the Tasis American School in Thorpe, outside London, says the number of eight-year-olds at the school has fallen 20% in the past year. Many affected parents are investment bankers who are going home because of the economic downturn. Some have been made redundant and would like to stay in the UK, but cannot find work.

It is during the summer that the depth of cuts in expatriate staffing made over the previous 12 months becomes apparent. Expats with children often delay going home until the end of the school year.

The former global chief operating officer of one UK-based fund manager lost his job in December, but remained in London for six months before returning to live in the US for the first time in 15 years.

"We've always been big on relocating at the end of the kids' school year," he explains.

Estate agents are noticing the departure of expats. Willy Getting of Property Vision says rents in London are down 20% from their peak in 2000. He says: "The lack of demand primarily stems from redundancies in the City of London. If you lose your job and you're an expat, you don't hang around."

Joe Mcleod, a consultant at outplacement consultancy RightCoutts, says many US bankers are giving up looking for jobs in London. "It's hard to find a job in summer because markets close down. For redundant expats, many of whom have already waited several months for markets to pick up, autumn is too far away."

Expats from outside the EU can face an extra hurdle in the job market. Headhunters in London report a lack of enthusiasm for employing non-EU nationals because they need a work permit.

Ben Dear, a director at recruitment firm Mantis Partners, says: "If you have been made redundant while being employed under a work permit, getting back into the market in the short term can be difficult. Employers are seeking candidates who don't come with additional complications."

The former chief operating officer at the fund manager agrees. "Trying to find an expatriate assignment while being in the country where you want to work is difficult. Until you find a job, it is best to be in your home country. US banks value international experience."

Dear says the absence of a work permit causes greatest difficulties at the junior end of the market. There is less need to hire people with specialist skills irrespective of their nationality.

Joaquim de Figueiredo Lima, a Brazilian studying for an MSc in finance at Cass Business School in London, says he has applied to several banks without getting an interview. Students with EU passports have been more successful, he believes. "The problem is worst at smaller banks without international offices," he says.

In the UK, many redundant expats are avoiding work permit problems by applying for highly skilled migrant status under government regulations. This enables them to stay in the country for a year, even without a job, after which they can seek an extension.

Julia Onslow-Cole, a partner at law firm CMS Cameron McKenna, says former bankers have been among the main beneficiaries of the scheme. "We have been helping five or six people from the City of London achieve highly skilled migrant status every day. Ninety-nine per cent are successful," says Onslow-Cole. Applicants are rated by education, work experience and earnings.

The scheme makes the UK an appealing place for expat bankers. Other countries are less lenient. In Germany, Christof Gaudig at law firm Mayer Brown Rowe & Maw says expat bankers are often given work visas that last for just one year and are tied to a particular job.

Gaudig says people who lose their job shortly after their visa is issued are well placed: they do not need to seek renewal immediately and can stay in the country and look for a new position.

However, without a job, it is hard to renew a work permit and remain in the country legally. Some people get round this by leaving, coming back on a tourist visa, and then looking for a new job.

US expat bankers stranded in the EU might be better off pinning their hopes on France, or at least on French banks. Valerie Barthes de Ruyter, a headhunter at Whitehead Mann, says French employers are keen to hire expat staff.

She says: "Most French investment banks feel they are a little too domestic. International hiring is a short cut to an international culture."

Jean Facon at search firm Christopher Beale Associates says Americans, particularly those with Asian experience, are in demand at French banks. Many are based in London.

There may be fresh hope for those American schools yet.