Morgan McKinley London Employment Monitor - February 2009

“Monitoring the pulse of the City job market”

City jobs market still significantly contracted compared to a year ago

Highlights

• While there was a slight uplift in the number of new job vacancies coming onto the market in February 09, levels of hiring activity within London’s financial services industry remained considerably contracted compared to a year ago
• The number of new job vacancies was 9% higher in February 09 compared with the previous month (January 09)
• However, there were still 62% fewer new vacancies than the same month a year ago (February 08)
• The number of financial services professionals who began their search for a new role during February 09 increased by 3% versus January 09, but was down 34% on the same month the previous year (February 08)
• The average City salary remained steady, registering £50,444. This was a 1% increase on both January 09 and February 08
• Those individuals who secured a role during February 09 took 78.2 days to do so; a month longer (31 days) than their counterparts did a year ago (February 08).

Number of job seekers continues to significantly outweigh available jobs coming onto the market each month.
During February 09, hiring activity in London’s financial services jobs market continued at significantly reduced levels compared to a year ago. Despite new job volumes increasing by 9% in February 09 versus January 09 and recording the second consecutive month-on-month increase, new job vacancies were still down 62% compared with a year ago (February 08).

The number of new candidates entering the jobs market increased slightly during February 09, rising by 3% compared with the previous month (January 09). The number of financial services professionals looking for work continued to heavily outweigh the amount of available roles coming onto the market each month and competition between individuals for those roles remains highly competitive.

Individuals who did secure employment in February 09 took an average of 78.2 days to do so versus 80.9 days the previous month (January 09). This was 31 days longer than their counterparts took a year ago (February 08).

Andrew Evans, Managing Director of Morgan McKinley comments:
“Despite a second consecutive month of increases in new job vacancies being recorded, it would be unwise to suggest that we are starting to see the green shoots of recovery in the financial services jobs market. This month’s increase was against a backdrop of recruitment activity being particularly slow in the preceding months of January 09 and December 08.” 

“Whilst there have been some more positive signs within the wider financial services market of late, such as some U.S banks reporting a return to profitability during the first two months of the year, the market is still incredibly volatile. It is encouraging that recruitment activity has not slipped further but there is still a distinct lack of visibility with regards to the health of the financial services industry and in turn, the jobs market within the sector. As long as this extremely low level of visibility continues, we will need to take each month as it comes.”

Average City salary
The average City salary rose slightly, by 1% compared with the same month the previous year (February 08), to £50,444. This was also a 1% increase on January 09.

Andrew Evans, Managing Director of Morgan McKinley comments:
“With many more people chasing fewer jobs, basic pay offers in London’s financial services sector are generally staying at the same level as the previous year. Until this gap closes or there is a shift in supply and demand the other way, salaries are expected to remain steady or even deflate to a certain extent for some roles.”

Chart 1: New candidates v. new jobs 

Chart 2: City salaries

Further press information:
Allira Carroll I

mprint
Tel: +44 (0)20 7438 3143 
Email: acarroll@imprintplc.com 

Elizabeth Faulkner   
Imprint
Tel: +44 (0)20 7438 3155
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 the leading specialist in banking and financial services recruitment.  Morgan McKinley offers a diverse range of solutions tailored to each client’s individual requirements. Morgan McKinley is the preferred supplier for over 200 financial institutions in the City.
 
Services include Contingency & Retained, Temporary & Permanent and Campaign Recruitment in the following areas: Alternative Investment, Accountancy and Banking Finance, Banking Operations, Commodities, Credit, Global Custody, Human Resources, Investment Administration, Investment Banking and Capital Markets, Investment Management, Legal and Compliance, Private Wealth Management, Risk Management and Quantitative Analysis, Secretarial and Support.
 
Morgan McKinley is a fully owned subsidiary of Premier Group, which comprises Accreate, Brunel, ECHM, iQ selection, la crème, Morgan McKinley, Nigel Lynn, Premier Finance and Verkom. The Group has 26 offices across eight countries.