Jobs in the Banking Sector are Down in Georgia
Jobs in the banking sector have gone down by 22% in Georgia since 2007. The turbulent banking segment has been contracted by nearly one fourth since the crisis started two years previously.
Full time employee numbers in the banks based at Georgia have dropped by 22%. It has dropped to 49,000 on 30th June this year from 63,000 in June 2007. These were the figures released by Federal Deposit Insurance Corporations that deals with data and analysis. The losses of jobs are exclusive of those operating in Georgia but having their bases outside the state.
The problem here is more about downsizing than outright failure of banks according those inside the banking industry as well as outside experts. The number of bank failures has been the highest in Georgia. There have been 23 collapses since 2008 August. Most of these banks have been modest community ones with only a few branches.
John Poelker of Georgian Bank commented, “It’s not failed banks, it’s the whole industry trying to rationalize their cost structures.”
The increasing cost of credit and losses from loans and foreclosures are stumbling even the successful banks. There is a lot of all round pressure. Chris Marinac of FIG Partners LLC said, “Your better banks are managing through it, but it isn’t easy.”
The numbers are in tune with the trend across the country. Everywhere the banks are shedding staff so as to be more cost efficient. They are gearing up for further losses in the future according to banking experts.
The banking segment as a whole in USA has lost 128,000 jobs since the second quarter of 2007. It is a drop of 5.7% as per the data given by FDIC. Of these 11% are from banks in Georgia. In Michigan bank employment has dropped by 37% and in California by 29%.
David Oliver of Georgia Bankers Association commented that this fall in banking jobs in Georgia was most unfortunate but it was no surprise considering the storm that has been lashing the banking industry.
Most of the banks in Georgia have cut the surplus staff working in support positions. Those who leave by themselves have not been replaced. The frontline workers have been retained and cuts have been avoided in this group so as to maintain efficiency in banking operations. But those who are seeing a rush of work connected with mortgage modifications etc have hired new hands. Low interest rates have also shored up demand for new mortgages.
