I have always looked at Economic forecasting as something of a voodoo science. Many economists and pundits have opinions of where the economy is going, and the beginning of a new year is always a good time to predict the future.
Thankfully, I’m neither an Economist nor a Fortune Teller. However, the general economic opinion on the North American market for 2008 ranges from “Cautious” to “Pessimistic”. I haven’t come across an opinion that says that 2008 is going to be a gangbuster year.
Being directly involved in the Job market for Accounting & Finance and subjectively watching trends, I do believe the following: No matter the economy in 2008, the Job Market in Accounting & Finance will stay strong.
I am confident in this prediction for the following reasons.
1) If the economy contracts, companies may cut people in core areas of the business directly related to revenue. However, companies, whether profitable or not, still need to produce and prepare their financial information on a timely basis. This still needs competent, intelligent and hard working accounting and finance professionals.
2) Accounting departments are not currently overstaffed. No one we speak to (either client or candidate) will admit to their accounting departments having too many people.
3) There may be fewer companies doing transactions, but I don’t believe that these transactions will grind to a halt. I do believe that companies with strong cash positions may acquire struggling companies at better prices than they could have bought them for in 2006/2007.
4) The strong economy has created a lack of work for Restructuring professionals. Many I have spoken to in 2007 are waiting for their turn for growth. This could be a great area to get new experience for candidates looking for something new and challenging.
One thing I am sure of – 2008 will be an interesting year. And as the Chinese Proverb says, “May you live in interesting times”.
Wishing you a successful 2008…
Samuel
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