Top graduates have flocked to the financial services sector for decades. Employment in this sector has ballooned. These jobs have not been created to support the two key roles of the financial sector – allowing money to be used efficiently as a method of payment and lending to solvent borrowers – but to play at the casino table that was created by ever more lax regulation in the face of global competition for the provision of financial services.
The financial sector will massively contract and this will be a good thing for the economy in the longer-term although painful for those who have never know anything but the rather strange life that one leads in this surreal sector of activity. It will be hard for them to re engineer their careers despite their undoubted abilities and for the first time in many years we will see large numbers of highly educated people joining the ranks for the unemployed.
One immediate impact is that the next outflow of graduates will be more focused on careers in industry as the attraction of the financial services sector wanes. This will be to benefit of the economy as the cream of our universities once again applies itself to innovation in industry.