The big chill?

Headhunters and recruiters are expecting a hiring freeze.

"It's going to get fairly hairy out there," says the European head of one (big) international search firm. "Given the events of the last few days, there are some fairly extreme positions on people's books. We're expecting clients to shutdown for a period and reassess."

Another recruiter tells us Goldman Sachs is saying it's 'overhired' analysts and associates and is putting further expansion on hold (this is unconfirmed by the bank). And Justin Harms, head of structured finance at recruitment firm Healy Hunt, says there are no hiring freezes yet, 'but we're sitting here expecting it.'

Not everyone's in the negative camp, however. David Carrier, director of search firm Kinsey Allen points out that August is always a quiet month for recruiting after which banks start to reassess headcount requirement for the new year - "But from our perspective, recruitment pipeline remains strong, particularly in derivative products."

And Tim Sheffield, chief executive of search firm Sheffield Haworth says they've been given "no indication" of a freeze yet - but adds 'these things can change overnight."

Despite falling global stock markets, rising interest rates and concerns over US credit risks, any chill may prove temporary: "I don't see a blanket shutdown [in recruitment] for the rest of the year. People will decide they're done for the summer and reassess in September and October," says the European head of the international search firm.