Expert: Drew Wilmoth - 11/12/2008

Question
Hello,

My partner and I have been offered work in Cayman on a 6 month temporary contract.  We are both currently in permanent finance related employment in London and were planning to resign from our current jobs mid December, to move and start work doing similar work in Grand Cayman in the middle of Jan.

The recent economic conditions has caused a rise of unemployment in the UK and that has rattled my nerves a little! Particularly as we will be on temporary contracts in Cayman. I understand you cannot predict financial markets, but can you give an idea of how the economy is out there, are there many reports or do you know of people being made redundant in the Cayman finance industry, or temporary contractors struggling to work full time?

My recruitment agent has assured me work shouldn't be a problem but I thought I'd ask you just to widen my perspective on these matters, so I can try and make the best decision!

Thanks in advance

Robbie

Answer
While I cannot make predictions with any certainty, redundancies are rarely heard of from the financial services sector in Cayman. In the very few occasions such discussion has arisen, it has been borne out of cost savings measures from corporate mergers.

The Cayman economy is not immune to the volatility in the wider world. Our economy is driven by financial services and tourism, and both of these sectors are currently suffering through trying times. Despite these current difficulties, the job market in the financial services sector in Cayman may have certain stability advantages.

A significant proportion of the global hedge fund industry is composed of funds registered in Cayman. Hedge funds have been a noticeable bright spot in the larger economic picture and have escaped much of the turmoil arising from the meltdown in the US housing market.

Additionally, the Cayman Islands government has an immigration policy which forces turnover in jobs which are held by expatriates. This rollover policy limits most non-Caymanian job holders to no more than 7 years in Cayman before they are forced off the island for at least one year. This results in a certain level of ongoing recruitment at all times to fill vacancies arising from this rollover policy.

Finally, there are a few temporary placement firms but these are generally structured more as a recruitment agency with the goal of moving to permanent placement after expiration of the temporary work permit. I have never heard of an employee brought to the island to work for such a temporary staffing firm who then found himself without work.