“Monitoring the pulse of the City jobs market”
Job availability in the City up 86%
Active jobseekers in the City up 98%
London Employment Monitor January 2014 highlights:
Vacancies and jobseeker numbers increase substantially as 2014 kicks off
The January 2014 London Employment Monitor recorded an 86% increase in City job availability – from 4,095 vacancies in December 2013 to 7,623 in January 2014. On a year-on-year basis, however, available positions reduced by 6% on January 2013 figures.
Professionals actively searching for new career opportunities increased to 8,328 in January 2014, from 4,214 in December 2013, signifying a 98% month-on-month increase. Year-on-year data is just as impressive as the number of candidates pursuing new roles was up 64% on January 2013 figures, pointing to continued optimism amongst City job seekers..
Hakan Enver, Operations Director, Morgan McKinley Financial Services, commented:
“As we predicted in last month’s monitor, City recruitment increased considerably in January after a traditional slowdown at the end of last year. Newly released recruitment budgets, coupled with an increased urgency for certain positions following December’s hiring shutdown, has resulted in a huge hike in positions across the board. This is in keeping with recent reports that, as economic confidence hit a record high, job vacancies have risen at the fastest rate since 1998."
"This has been particularly evident within the contract market where we have not only seen heightened demand, but also a reduction in the time to hire. Whilst historically contractors could expect three or four interview rounds before an offer, today we are seeing this reduced to one or two. Contractors that not only have the technical ability, but who are also a good cultural fit are being snapped up very quickly.“
“Elsewhere we have seen increased demand within the finance and internal audit space. On the finance side, it is clear that the majority of firms are looking to build out their non-product areas or functions that have a broad overview of all of their business functions. There have been a number of senior MI positions focused on profitability reporting and analysis, in contrast to any significant hiring in Product Control or the Valuations space. The regulatory functions of various large banks continue to be a key focus, as many of the implementations around the BASEL III framework require experienced individuals who are comfortable operating in change/project environments. We are expecting this trend to continue as we advance through 2014.”
“Meanwhile, within the internal audit space, January saw a lot of activity in the recruitment of Credit Risk and Counterparty Risk Auditors at all levels. Similarly, Market and Model Risk Auditors have been in high demand. The main reason for this is due to growth as opposed to simply replacement hiring which has been a trend over the last 24 months. Businesses are also looking to shift their audit lines into more specialised team structures, in line with the changes in the regulatory landscape. Another area of focus has been Senior Audit Manager / VP level hires into Corporate Banking for similar reasons.”
“On the jobseeker side, the increased numbers again point towards increased confidence amongst City jobseekers. However the month-on-month rise can also be attributed to a large influx of European CVs, in particular from French bankers. This is perhaps unsurprising given the current economic situation in France, coupled with a more favourable tax regime for high earners in the UK, which is positioning London as an attractive destination.”
“We have also seen a rise in the number of professionals open to new positions in light of the changes to bonuses. Whilst some institutions have yet to award them this year, what is very clear is that candidates are now prioritising other factors when deciding to consider new opportunities. For example, more recently, candidates are looking to move positions to secure lucrative base salaries on offer elsewhere.” “Looking further ahead into 2014, we predict continued optimism in the City. Recent reports¹ that pension funds are in their strongest financial position for two and a half years, and are helping the UK Government bonds reverse the deepest losses since 1994, means that we predict increased hiring activity within the asset management arena as we progress through 2014.In fact, recent reports² from PricewaterhouseCoopers, suggest that the asset management industry will grow significantly in the next decade..”
Salary a strong motivating factor for job seekers
The average salary increase for those securing new jobs in February 2014 was15%, compared to 20% in January 2014.
“Despite a slight drop from the previous month,a 15% rise in average salaries is still enough to tempt individuals away from an existing position. Combined with the increase in candidates looking for roles, firms are going to need to put remuneration strategies in place in order to retain their talent – with bonus pots significantly reduced, they will need to look at boosting the base salaries on offer to top performers. Without these key staff, troubled institutions will struggle to recover.”
Chart 1: Financial services jobs new to the market February 2014
Chart 2: Job seekers available both in and out of employment February 2014
Chart 3: Average change in salary each month February 2014
Further press information:
Stephanie King, BlueSky PR Vicki McDonald, BlueSky PR
Tel: +44 (0)1582 790700 Tel: +44 (0)1582 790708
Notes to editors:
Monthly new jobs and new candidates
*From May 2013, the London Employment Monitor now uses Morgan McKinley’s own weekly records of new permanent and temporary job vacancies and new candidates registering with the firm for employment. Statistics for the full market are derived using Morgan McKinley’s market share.
Morgan McKinley is a global professional services recruiter connecting specialist talent with leading employers across multiple industries and disciplines.
With offices across Ireland, the UK, EMEA, Asia and Australia, the company’s professional recruitment expertise spans banking & financial services; commerce & industry and professional services. Morgan McKinley is a preferred supplier to many of the major employers in its specialist sectors and thousands of smaller local firms.
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