The global financial crisis has resulted in the closure of nearly 62,000 jobs worldwide by 2023, according to a report from the Financial Times (FT). This is due to the lack of funds for transactions and registrations in financial markets. The report highlights that last year saw one of the largest job cuts since the financial crisis that occurred 15 years ago. According to FT, “the top 20 banks cut a total of 61,905 jobs.” These organizations, unable to withstand the increase in interest rates during the global financial crisis of 2007-2008, have cut over 140,000 jobs in total.

Of these job cuts, approximately half have occurred within the organizational structures of Bank of Sturits, which faced challenges in gaining approval in the US and Europe due to the increase in interest rates. In previous years, such as 2015 and 2019, significant job cuts in banks were primarily attributed to the high interest rates imposed by European lenders.

It is important to note that these job cuts have significant implications not only for the individuals directly affected but also for the overall economy. Job losses of this magnitude can result in decreased consumer spending, slower economic growth, and increased economic uncertainty.

The financial industry plays a crucial role in the global economy, and the impact of the global financial crisis on job cuts highlights the vulnerability of this sector during periods of economic turmoil. It is essential for policymakers and financial institutions to carefully navigate through such crises to minimize the negative effects on employment and the economy as a whole.

As we continue to recover from the aftermath of the global financial crisis, it is crucial to learn from past mistakes and implement measures to prevent or mitigate the severity of future crises. This includes building a more resilient financial system, strengthening regulations, and promoting responsible lending practices. By doing so, we can strive to create a more stable and sustainable global economy.