Volatility creates more jobs in the back office

Stock market volatility and increased trading volumes are contributing to an already overheated market for clearing and settlements staff.

Last month the three leading European stock exchanges, Deutsche Börse, Euronext and the London Stock Exchange, enjoyed their busiest month on record, according to Financial News. 41 million trades were placed, up 91% on May 2005.

Oliver Harris, head of the contract division at recruitment firm Robert Walters, says swelling trade volumes are leading to a concomitant swelling in banks' need for staff to process trades. With permanent staff already in short supply, in the short term he says banks are looking to fill many vacancies with contractors.

"We're flat out," says Harris. "The whole year has been busy, but we saw a 15% uplift in contact jobs in the May. Volumes have gone through the roof, and the need for new staff is immediate."

Harris says the contract market is experiencing dramatic wage inflation, with the best contractors now able to command 20% to 30% more per hour than this time last year.