How will the current financial climate affect jobs in finance

In his recent testimony, Ben Bernanke, Federal Reserve chairman, gave warning that the difficulty companies and consumers face when trying to get a loan and the steep rise in the price of short-term credit poses a direct threat to the growth of the economy. For many workers in America, it is a direct threat to their employment. So how does the credit crunch impact the job market in general? Are you at risk?

Experts are predicting that the current financial crisis is more likely to negatively affect middle and upper level workers to a greater extent than seen in previous recessions. At this point it is safe to assume that jobs in the finance, banking, construction and real estate industries will be the first to suffer as the crisis begin with problems in home prices. Unfortunately, it is very likely that the damage will propagate to other industries, sectors that strictly rely on consumers to purchase goods and services with credit cards. This is something that could trickle down to industries that manufacturer durable goods such as business equipment and household appliances.

Historically, such trying times have hit those with the least skills the hardest, mainly because employers tend to keep experienced workers who would otherwise be too costly to replace. Some say that this downturn is likely to be far more democratic than usual due to the severity of the crisis. If funds are not available, companies will be hiring fewer workers regardless of their skill level.

There is evidence that the crisis has already added to the unemployment rate, rising from 5.1 to 6.1% in no time. It is very likely that this unsettling rate will remain high until the economy makes a full recovery.

This article was written on behalf of Martin Ward Anderson who provide finance recruitment for jobs in finance and accountant jobs