London Employment Monitor February 13 highlights:
Hiring market activity increases in February 13
Morgan McKinley’s February 13 London Employment Monitor recorded a monthly rise of 11% in newly available jobs from 2,331 in January 13 to 2,583. This still remained a lower level of available jobs than February 12 which registered 3,056 – a drop of 15%.
The number of professionals entering the jobs market in February 13 also rose month-on-month with a 4% increase from 5,065 to 5,266 job seekers. However compared to the same month last year, there was a drop of 13% from 6,084 job seekers looking for new opportunities.
Although both job availability and job seeker interest in new roles were once again below the levels of February 12, the decreases were smaller than previous months. For job availability, the decrease on the previous year is the smallest gap seen since June 11 and for job seekers, it is the smallest decrease since December 11.
Hakan Enver, Operations Director, Morgan McKinley Financial Services commented:
“It’s a promising start to the year to see job availability rise again and this more modest increase of 11% month-on-month is a more realistic picture of the current market. It indicates there is still an appetite to hire with continued momentum following the increased number of available jobs in January 13. The performance of the FTSE during February 13 will undoubtedly have raised the level of confidence across the City which is always quick to be influenced by key indicators. In addition, the Markit/CIPS Purchasing Managers Index showed the fastest rise in business activity for five months in February 13 – another sign of positive sentiment throughout the UK.
“Our analysis of this increased job availability shows that there is still demand in the functions that require regulatory expertise, as we have mentioned previously. Also operations professionals are in demand, particularly within the investment banking and asset management sectors where there has been a considerable rise in requirements for ISDA negotiators and drafters.
“The modest 4% increase in professionals entering the hiring market continues the positive movement seen in January 13 after nine consecutive months of job seeker numbers declining in 2012. Again the economic indicators mentioned will give professionals equal confidence in market stability. While this point in the year may encourage movement from some who will not receive a bonus, the other side of the coin is that those awaiting their bonuses will have little interest in moving before they are paid, hence the rise in professionals looking for new opportunities being relatively small.”
Salaries continue to show upward trend
Remuneration in the City continues to rise although at a lower level than January 13. For those securing new jobs in February 13, the average change in their salaries was an increase of 10%.
Hakan Enver continues:
“This increase in the average salary has been a trend over the past year and we expect to see it continue. Pockets of the market that are experiencing demand will encourage employers to be competitive with salary offers. Where individuals may see their pay fall when securing a new job is typically only in situations where they have been out of the workplace for a significant period of time and may well be returning to a different role or function.
“The recent debate on introducing a cap on bonuses at 100% of annual salary is likely to ensure continuation of increasing pay across the sector. It has traditionally been the case that limiting overall reward in the financial services sector results in base pay rising as employers need to ensure that London continues to attract the best global talent.”
Chart 1: Financial services jobs new to the market
Chart 2: Job Seekers available (both in and out of employment)
Chart 3: Average % change in salary each month
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Notes to editors:
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 and temporary employment. Statistics for the full market are derived using Morgan McKinley’s market share.
Chart 3 illustrates the average percentage change between original salary and new salary offer for professionals securing new roles each month.
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