Morgan McKinley London Employment Monitor - June 09

“Monitoring the pulse of the City jobs market”

New job numbers in June 09 highest this year

Highlights

• During June 09, the number of new job vacancies within London’s financial services industry increased by 20% versus May 09
• However , there were still 58% fewer new job opportunities than a year ago (June 08)
• The number of new candidates entering the jobs market slowed during June 09, registering a decrease of 9% compared with May 09 and 26% versus June 08
• Candidates who did secure a new role in June 09 took an average of 55 days to do so. This was four days less than it took their counterparts in June 08
• The average City salary remained steady at £50,115; an increase of 2% versus the  previous month (May 09) but down 1% versus June 08
• Those individuals who moved roles during Q2 09 received an average increase in their basic salary of 10%. This was 3% more than those who moved in Q1 09 but 9% less than the same period a year ago (Q2 08).

Recruitment levels show signs of stabilising within London’s financial services industry

The latest job figures indicate that there has been some improvement in London’s financial services recruitment market during June 09. Despite there being 58% fewer new job vacancies coming onto the market compared with June 08, new job volumes were up 20% compared to May 09 figures, reaching their highest level so far this year.

The number of financial services professionals who began their search for a new role in June 09 fell 9% compared with May 09 and 26% versus the same month the previous year (June 08).  The time it took individuals to find a new role during June 09 was unchanged versus the previous month (May 09), taking candidates an average of 55 days. However, this was four days less than a year ago (June 08), demonstrating the slight improvement in employers’ appetite and commitment to hire.

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

“If you compare the flow of new financial services job vacancies coming onto the market in the first half of 2009 versus the second half of 2008, the figures suggest that recruitment levels within this sector may well be stabilising. This was particularly apparent in June 09, which registered the highest volume of new jobs so far this year. While this is a positive sign, these figures must be viewed within the context of new vacancies still being at less than half the volume they were at compared to a year ago.

“Over the last couple of months, there have been muted increases in hiring in most areas and across most levels within the financial services industry and in areas where there hasn’t been a rise in actual job numbers, there does seem to have been an improvement in the appetite amongst employers to recruit. As redundancy announcements slow and confidence levels within the financial markets improve slightly, we’re seeing more people who are currently in work starting to look at what job opportunities are out there.

“The financial services jobs market is still highly competitive for jobseekers and despite some positive signs of improvement, it is likely to get even more competitive over the summer months.  Traditionally, the third quarter of the year is one of the slowest periods within the annual recruitment calendar and the current economic situation is likely to exacerbate this slowdown in 2009.”

Average City salary

The average City salary registered £50,115 during June 09, a 2% increase on the previous month (May 09). This was a 1% decrease versus June 08.

Those financial services professionals who moved into a new role during Q2 09 received an average increase of 10% in their basic salary. This was a slight improvement compared with the previous quarter (Q1 09); which registered an average rise of 7%. However, the Q2 09 figure was down 9% on the same period a year ago (Q2 08) when candidates who changed jobs received an average increase of 19% in their basic salary.

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

“This time last year there were more than double the amount of new jobs coming onto the market and the gap between available jobs and candidates was significantly smaller. At that time, individuals were in a much better position to negotiate higher starting salaries. However, the current market situation has meant that many of London’s financial services professionals have moved roles for a similar or in some cases lower basic salary, particularly if they were not working.”

Chart 1: New candidates v. new jobs 
 

Chart 2: City salaries

-ENDS-

Further press information:
Allira Carroll                                               Elizabeth Faulkner   
Tel: +44 (0)20 7438 3143                          +44 (0)20 7438 3155
Email: acarroll@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.

Quarterly average % increase in basic salary when moving roles
These are based on the average percentage difference between the basic salary they were awarded when placed by Morgan McKinley and the basic salary of their previous role.

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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