Morgan McKinley London Employment Monitor - April 09

“Monitoring the pulse of the City jobs market”

Seasonal factors slow recruitment within London’s financial services sector

Highlights

• During April 09, the volume of new job vacancies within London’s financial services industry fell 20% compared with the previous month (March 09) and 69% compared to April 08 levels
• Individuals who secured a role during April 09 took an average of 61 days to do so; four days longer than it took their counterparts a year ago (April 08)
• The number of financial services professionals who began their search for a new position in April 09 fell 4% versus March 09 and 40% compared to a year ago (April 08)
• The average City salary registered £52,106, a 7% increase on the same month the previous year (April 08).

New financial services job numbers fall in April 09 but employers show greater commitment to hire

Recruitment within London’s financial services industry slowed during the month of April 09 with the number of new job vacancies falling by 20% compared with the previous month (March 09). The decrease ended three consecutive months of growth, which was consistent with expectations given the Easter break. The bank holiday disrupted the flow of new jobs onto the market as well as general hiring activity during the month. Compared with the same month the previous year (April 08), new job opportunities were down 69%.

The average time taken for financial services professionals to secure a new role in April 09 was 61 days. While this was one more day compared to March 09, it registered a significant drop compared to January 09 and February 09, when it took an average of 81 days and 72 days respectively to secure new jobs. These figures suggest that over the last two months, there has been a stronger commitment to hire and as a consequence the recruitment process has speeded up. Nevertheless, the April 09 figure was still four days more than the same month the previous year (April 08).

The number of new candidates entering the jobs market during April 09 remained relatively steady, registering a fall of 4% versus March 09. However, there were still 40% fewer new candidates than a year ago (April 08).

Andrew Evans, Managing Director of global professional recruiter, Morgan McKinley comments:

“While the decrease in new City job vacancies was to be expected in April 09 as the month included the Easter break, it did put an end to the small uplifts in hiring seen during the previous three months of the year. It is clear from these figures that recruitment activity continues to be at reduced levels compared with a year ago and the sizeable gap between the number of new candidates and vacancies highlights that the financial services jobs market in London is still extremely competitive.

“Having said that, over the last couple of months, there does seem to have been a slight shift in attitude amongst City employers. While the highly considered and cautious approach that institutions have been taking towards recruitment is still very much prevalent with businesses continuing to only hire individuals who exactly match their stringent hiring criteria and remuneration expectations, there does seem to be a stronger commitment to secure talent. More of the roles that are coming onto the market are being filled rather than put on hold. This shift in attitude has reduced the time it is currently taking for candidates to secure their new role.”

Average City salary

The average City salary registered £52,106 during April 09, a 7% increase versus the same month the previous year (April 08). This was primarily driven by an increase in basic salaries at the senior end of the market where employers often still have to pay above average salaries to attract key talent for strategic operational roles.

Andrew Evans, Managing Director of global professional recruiter, Morgan McKinley comments:

“Despite reduced recruitment levels, there are still some cases where employers are paying above average basic salaries. This is particularly prevalent at the senior end of the market where employers are securing high calibre individuals for strategic roles such as managing and overseeing the upgrading of systems and the improvement of processes.

“Recently, there has been a lot of talk in the media about financial institutions increasing basic salaries to offset changes to the structure of bonus packages. This has been evident in certain cases, predominantly at the senior end of the market but for the majority, they are still in very early discussions on the prospect and assessing the implications of such a proposal."

Chart 1: New candidates v. new jobs
 

Chart 2: City salaries
 
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Further press information:
Allira Carroll                                       Elizabeth Faulkner   
Tel: +44 (0)20 7438 3143                  +44 (0)20 7438 3155
Email: acarroll@imprintplc.com          efaulkner@imprintplc.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 £10,000-£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.

Morgan McKinley is a fully owned subsidiary of Premier Group.