FRANKFURT—Europe’s labor markets are starting to crack.
After a year of near-zero economic growth, job creation is slowing and surveys suggest that more businesses in the region are preparing to lay off workers, threatening to further damp growth and drain public coffers.
New Delhi: With Diwali over, the media will report different estimates on how much sales the season has generated for companies. Payment data from the Reserve Bank of India (RBI), available on a daily basis, shows that card spends this October at shops and on e-commerce sites was about 17% higher than in October 2022. In absolute terms, that’s a ₹29,000 crore increase. The data covers spending on credit cards, debit cards and prepaid cards.
The same data Is also available for the first eight days of November. This period typically accounts for 27-30% of the total spending in November. Assuming a rate of 30%, this implies that total spending for October and November will be higher by 22%, or ₹69,000 crore, over the same period in 2022
Bonuses for investment bankers advising companies on mergers and acquisitions are expected to drop by 15% to 25% this year from 2022, according to a study by Johnson Associates, a compensation consultant in New York.
Commercial and retail bankers at regional banks will receive bonuses that are 10% to 20% lower than the previous year, the report showed.
Most Wall Street professionals will have to wait another year for a rebound,” said consultant Alan Johnson. “With the financial markets and overall economy struggling to find footing throughout the year, most business segments remain under pressure to keep compensation costs down.”
But there are some exceptions. Investment bankers working in equity underwriting are projected to receive payouts that are 5% to 15% higher than last year, while wealth managers could receive awards that are 5% higher. Retail or commercial bankers working in large institutions could see year-end bonuses stay flat or rise about 10%.
Looking ahead, 2024 is unfortunately expected to be another challenging year,” as higher interest rates and geopolitical uncertainty restrain activity, the consultant wrote. “Headcount and staffing models are being evaluated” as turnover declines and companies divide smaller bonus pools based on performance.
Bonuses for debt underwriters are expected to stay flat or drop as much 10%, while payouts for equity trading could fall 5% to 10%.
Finance professionals working in fixed income trading, hedge funds, private equity firms and asset managers can expect flat bonuses or small gains or losses, according to the estimates.