More people in … but fewer local recruits into finance

Wednesday 29 June 2016

Fewer local school-leavers and graduates were recruited into the finance industry in 2015 - in the same year that the Island's net migration target was smashed.

The number of local recruits into Jersey's biggest industry fell to 360 full-time equivalent workers - 30 fewer than 2014. Yet - as figures revealed last week - the net migration figure for the same period was 1,500, more than a five-fold increase on the States' target of 325.

The latest figures are revealed in an official study of the value and productivity of financial services in Jersey. It shows that, overall, the industry continues to decline. When it comes to value of finance to Jersey, as measured by Gross Value Added, it declined by one per cent in 2015, or £10m.

This was due to shifting fortunes in its sub-sectors: banking - by far the largest sub-sector - declined in value by four per cent (£40m) while accountancy grew by 13 per cent (£10). Trust / company admin and legal services both increased by five per cent (£20m and £10m respectively). Fund management remained static. In total, finance was worth £1.7 billion.

In real terms, total GVA in 2015 was more than £600 million below the previous peak recorded in 2007.

Productivity also declined by three per cent in 2015, again driven by a decline in banking.

But while value and productivity fell, workers got paid more. Mean employment costs per full-time equivalent employee was £65,000 - an eight per cent increase compared to 2014. And the average bonus jumped by 12 per cent to £5,500.

The total revenue generated by Jersey’s financial services sector in 2015 was estimated to be £2.38 billion, with banking still bringing in the lion's share (£970m) followed by trust / company administration (£450m).