The Wall Street Journal reports that Wall Street employment rose 5.4% in February from a year ago, but the pace of job growth slowed as banks reported slightly lower monthly headcounts in areas such as securities brokerage, based on New York State DOL statistics.  All told, Wall Street reported 169,400 professionals vs. 160,700 one year earlier, and 169,100 in January. A DOL analyst notes that, while seasonality has some impact on the numbers, Wall Street is still 10,000 jobs above its low in January 2010.  However, the 169,400 total is the highest monthly employment total since March 2009. 

The slower employment growth in February could be a reflection of a weaker trading environment. In recent weeks, analysts have begun to chop earnings estimates on firms such as Goldman Sachs and Morgan Stanley, following political unrest in the Middle East and the earthquake, tsunami and nuclear concerns in Japan.  Such events have led to the cancellations of some initial public offerings and other deals.

    Securities Brokerage.   Within securities brokerage, which includes jobs such as financial advisers, headcount rose to 61,100 in New York City, up 4.3% from a year earlier.  The category reported 68,000 jobs in New York state, an increase of 2.9%.  That number is one that could come under pressure next month as Morgan Stanley recently is reported to have said aid it would lay off 200 to 300 trainees and lower-producing financial advisers in its Smith Barney brokerage joint venture.  Headcount in investment banking and securities dealing rose 2.9% to 42,700, but dropped 0.5% month-to-month.  The Labor Department employment statistics may not fully reflect employment trends at the biggest banks. Some of the categories include back-office personnel, and data are also gathered from smaller institutions, which could skew the overall industry figures.   [WSJournal, 3/24/11]