Morgan McKinley London Employment Monitor April 2010
City job opportunities fluctuate in pre- election month
Highlights
- The number of new jobs available in London’s financial services sector fell by 12% in April 10 from March 10, although still recording the second highest level of new jobs since September 08
- Compared to the same month a year ago when job opportunities fell sharply, April 10 registered a 100% increase in the availability of new jobs
- More financial services professionals entered the jobs market in April 10 with a 33% month-on-month increase
- Compared to April 09, there was a 69% rise in professionals looking for new roles
- The time taken to find a new position fell to 53 days from 60 days in March 09, highlighting that the recruitment process amongst financial institutions is starting to pick up pace
City sees anticipated slowdown in job vacancies
London’s financial services jobs market registered a 12% drop in new jobs in April 10 from 6,632 to 5,569 month-on-month. This follows three consecutive months of financial services job increases up to March 10 and shows the slowdown in hiring activity anticipated in the lead-up to the general election. Conversely, compared to the same time last year, job opportunities rose by 100% from the low point of 2,772 in April 09.
The number of new financial services professionals entering the jobs market continued to increase from 8,950 in March 10 to 11,910 in April 10 – a 33% rise. Similarly, compared to the same month last year, the pool of professionals interested in changing jobs rose from 7,060 in April 09 – an increase of 69% in April 10.
Andrew Evans, Managing Director of Morgan McKinley’s financial services division commented: “Underlying recruitment activity continues to be at its strongest since the start of the downturn, although there will always be fluctuations on the road to recovery. As anticipated in last month’s Employment Monitor, job opportunities decreased in April 10, although they still registered the second highest level since September 08. After a very strong Q1, it was expected that activity would not continue at the same pace. The month-long general election campaign fuelled debate about possible regulation and policy changes within the financial services market. In addition, the likelihood of a hung parliament and economic uncertainty in the Eurozone as well as the Easter break added to the reduction in recruitment activity, although it still remained comfortably above February 10 levels.
“The number of financial services professionals available for new roles rose for the fourth consecutive month. The start of Q2 is often the time when individuals think about moving. Those looking to develop their careers by changing jobs will have had bonuses in their pockets and greater visibility of what institutions are now willing to pay to attract the best talent. Although not a candidate-led market, many experienced professionals were in a stronger position in April 10 than at the same point last year and we have already seen some being able to pick and choose from multiple job offers. Last year, it was much more a case of ‘sit tight’ or ‘take what you can get’.”
City salaries
The average City salary in April 10 was £50,734, which was 9% lower than March 10 but consistent with the average salaries in January 10 and February 10.
The time taken for professionals to find new roles in the City decreased by seven days in April 10 to 53 days. This is the second consecutive monthly fall and the shortest period of time recorded to find a new job since July 08.
Andrew Evans concluded: “Salaries at all levels have remained relatively stable over the last year. In recent months remuneration in financial institutions has been a major bone of contention, which means that salary levels have not increased across the board at the first sign of recovery, as might have been the case in the past. However, some individuals who have the right skill set for certain roles are being made particularly attractive offers and counter-offers, although these are exceptions and not the norm.
“For those looking to secure a new role, the speed of the recruitment process has started to pick up pace over the last two months as employers look to attract key talent ahead of competitors. The time taken by financial services professionals to secure a new position decreased by seven days in April 10 - a positive sign for the City jobs market.”
Chart 1: New jobs vs. new candidates
Chart 2: Average salaries
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Alexandra Fleming
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Email: afleming@morganmckinley.com
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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.
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