Financial advice is in one of the 10 professions most at risk of losing jobs to overseas outsourcing – with as many as 500 per year being offshored.
These are the findings of the Off-shore and Off Work report by the National Institute of Economic and Industry Research.
Prepared for the Finance Sector Union (FSU) and the Australian Services Union (ASU), the report notes that finance managers and financial investment advisers sit in tenth place on the list of jobs most at risk of being offshored over the next 20-30 years.
When it came to the scale of potential job losses, the report estimated that as many as 10,000 jobs in the finance managers and financial investment advisers category are set to go overseas over the next two to three decades.
Noting that the finance and insurance sector has high proportions of jobs ‘at risk’, the report predicted that the proportion of jobs ‘at risk’ in this sector is almost twice the rate for service industries as a whole.
It added that 24% of jobs in this sector are at risk of offshoring – representing 97,000 jobs, or more than 3,000 jobs a year over the next two to three decades.
Overall, the report’s author’s forecasted that three-quarters of finance and insurance industry occupations are in the top one-third of occupations at risk of offshoring – while more than one-third of jobs are in the top 10%.
With more than 20,000 jobs moving offshore each year, between 700,000 and one million jobs are expected to move offshore in the next three decades.
Action is needed to address service sector offshoring crisis and boost competitive position of Australian service industries.
“Employers in the finance sector are engaged in a race to the bottom in order to cut costs, at a time when they are more profitable than ever before. And it’s a race that no one wins,” said FSU national secretary Leon Carter.
“Finance workers, their customers and the communities they serve would prefer that these companies invest in the communities they derive their profits from, and keep jobs, skills and data here in Australia.”