Being Less Pro-Cyclical in Hiring Decisions

The hiring trends in financial markets are pro-cyclical, where firms tend to hire in sectors that have been performing well recently. For example, hiring more commodities traders when commodities are hot and firing FX traders when FX is not performing well. This pro-cyclical nature leads to hiring peaks and subsequent layoffs, creating a vicious cycle. Managers are encouraged to be less pro-cyclical in their hiring decisions to avoid potential layoffs and instability in their business.