Banking employment slumps by 22%

THE Irish banking sector saw employment growth slump by 22% last year.

Just 289 jobs were added in banking last year, compared with 1,915 the previous year. The decline is in spite of figures showing that employment in Ireland’s international financial services industry hit 25,000 for the first time in 2007, according to the latest 2008 Finance Dublin Yearbook.

The Yearbook says the credit crisis is having an impact on jobs growth. It shows that companies based at the Irish Financial Services Centre (IFSC) and other Irish international financial services companies was just over 8% last year — half the growth recorded the previous year.

“So far this year evidence indicates a continued weakening in the banking sector, reflecting the ongoing impact of the credit crisis.

“A softening is also noted in insurance and funds, although not as pronounced in the banking and credit sectors,” it said.

Funds were the strongest sectors last year with job numbers rising by 14.9% or by 1,372 to 11,191.

Insurance employment growth reflected the buoyant international conditions in the sector last year, and Ireland’s international services industry remains relatively insulated from global conditions by its services centre status, compared with primary investment banking centres such as London and New York, according to the Yearbook.