Morgan McKinley London Employment Monitor - January 2010

“Monitoring the pulse of the City jobs market”

Financial services hiring market starts the year on optimistic note

Highlights

New financial services job opportunities in January 10 rose by 60% compared to January 09 a month when hiring in the sector was at one of the lowest points since the ‘credit crunch’ began.
Following the typical decline in job vacancies in December 09 due to the Christmas period, January 10 registered a 105% month-on-month increase in roles as hiring resumed the gradual pattern of growth that was built up over the course of 2009.
The number of financial services professionals starting their job search in January 10 increased by 54% compared to December 09
January 10 saw a slight increase (3%) in the number of individuals looking for new roles compared to the same month of the previous year (January 09)
The average City salary remained stable with a decrease of 1% on December 09 but an increase of 1% on the same month last year.

Hiring levels across the financial services sector show return to growth

January 10 saw a healthy 60% rise in London’s financial services job opportunities from 2,898 in January 09 to 4,646, indicating a significantly more positive outlook for the City hiring market this year than at the start of 2009. Following the typical seasonal dip in hiring over the Christmas holiday period, recruitment levels across the financial services sector in January 10 returned to the general pattern of growth experienced over the course of 2009. Newly available job vacancies in January 10 registered a 105% increase to 4,646 from 2,268 in December 09.

The momentum behind City professionals looking for new roles also picked up in the first month of the new year with numbers increasing by 54% month-on-month to 6,760 from 4,390 in December 09. However, compared to the same month of the previous year (January 09) the number of professionals looking to move increased by only 3% from 6,570 to 6,760.

Andrew Evans, Managing Director of Morgan McKinley’s financial services division commented:

“There were more new job opportunities in January 10 than at any point in 09, which is very encouraging. This month’s figures show a return to the slow but steady pattern of growth in financial services hiring that has been building up over the course of 09. However, we are still a long way off pre-financial crisis hiring levels. A more accurate gauge of job growth is the 7% increase in job vacancies from November 09 to January 10 which indicates that January recruitment levels are in tune with the recent upward trend. Any further improvement in the hiring market over the next few months is likely to be gradual, reflecting the pace of recovery in the UK economy.

“Despite the expected month-on-month increase in professionals looking for new job opportunities in January, following the holiday period, there was only a modest 3% increase compared to January 09 figures. However, a greater proportion of those starting their job search this January are likely to be doing so voluntarily. This would not have been the case this time last year. With improved confidence in the market, more job opportunities starting to filter through and some bonus payouts having been announced; those in employment are becoming more inclined to kick off their job search.”

City Salaries

Average salaries remained stable in January 10 with a 1% decrease from ₤50,858 to ₤50,464 month-on-month and a 1% increase from ₤49,983 to ₤50,546 compared to the same month last year.
Andrew Evans, Managing Director of Morgan McKinley’s financial services division concluded:
“The basic salary for the average City worker has remained relatively stable over the last year as a result of market conditions. However, if hiring levels continue to pick up, it will be interesting to see whether average pay levels in 2010 will follow suit or whether rises will be limited to certain isolated cases where demand for specific skill sets will lead to salary inflation.”

Chart 1: New jobs vs. new candidates

Chart 2: Average salaries

-ENDS-

Further press information:
Alexandra Fleming Elizabeth Faulkner
Tel: +44 (0)20 7438 3154 +44 (0)20 7438 3155
Email: afleming@morganmckinley.com efaulkner@morganmckinley.com

Alternatively, please contact the Press Office on +44 (0)20 7438 3150.

Note to editors:

Statistical methodology

Salaries
Annual salaries are based on confirmed placements by Morgan McKinley in a particular month. Salaries are segregated into three pay groups:

Support and administration: Secretaries, receptionists, statistical assistants, administrative clerks, settlement clerks, fund administration, trade support, graduates, client services (salaries ranging from £20,000-£34,000)
Middle market professionals: HR officers, junior analysts, project managers, financial controllers, product controllers, portfolio analysts, business analysts (salaries ranging from £35,000-£60,000)
Directors and senior professionals: Corporate finance, bankers, fund managers, senior analysts (salaries ranging from £61,000+)

Monthly new jobs and new candidates
These are based on Morgan McKinley’s own weekly records of new permanent job vacancies and new candidates registering with the firm for permanent employment. Statistics for the full market are derived using Morgan McKinley’s market share.

About Morgan McKinley
Morgan McKinley is a global professional recruitment consultancy connecting specialist talent with leading employers across multiple industries and disciplines.

With 24 offices across the UK, Europe, the Middle East and Asia-Pacific, its professional recruitment expertise spans across Banking & Financial Services, Commerce & Industry, Public Practice, Public Sector & Not For Profit and Taxation. Morgan McKinley is a preferred supplier to many of the major employers in its specialist sectors, as well as thousands of smaller local employers.

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