U.S. securities industry employment contracted faster than overall employment in the third quarter, according to the latest data from the Securities Industry and Financial Markets Association.

SIFMA said that overall industry employment fell by 0.8% in the third quarter, a larger decline than overall employment, which fell by 0.6% in the same period. The move represents the loss of 3,500 jobs, leaving industry employment at 793,800.

In the previous quarter the industry gained about 10,000 jobs. However the job loss in the third quarter this year represents an improvement from the past couple of years. In the same period last year, the securities industry lost 12,900 jobs, and in the third quarter of 2008 the industry lost 15,300 jobs.

SIFMA suggests that approval of regulatory reform in the U.S. may enable firms to adjust their staffing levels to the new regulatory environment.

“The long awaited passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act in July brought to a close the first stage of financial regulatory reform; the rulemaking phase, however, is just beginning. While the final outcome of regulatory reform will not be known for years in some areas, the passage of the Act may allow firms to make some hiring decisions that they could not make while the legislation was still under debate,” it says.

IE