No Guarantees

No Guarantees

Goldman Sachs announced last week that it is doing away with two-year contracts for analysts hired out of college. According to the Wall Street Journal, the guarantee program has been around for over 25 years and has been viewed as a ticket to a lucrative Wall Street career. Goldman’s move is a blow to junior analysts who put in long hours for a shot at moving up the ladder. It is the latest sign that the financial industry remains unsettled, and hiring practices are being impacted and affecting everyone, including analysts who are on the lowest rung of the totem pole. The job market is being reset as institutions continue to grapple with a changing economic landscape. Next spring, university job fairs are not going to seem the same as investment banks (especially Goldman) put away the check books, and bright-eyed and bushy tailed graduates will be forced to launch their careers without a security blanket. Welcome to the new world, kids.