Press Release: London Employment Monitor - March 2012

Hakan Enver 01.03.2012
  • Job vacancies across London’s financial services sector fell by 8% from February 12 to March 12
  • Compared to the same month last year, this was a decline of 57%
  • Job availability from Q4 11 to Q1 12 rose by 4%
  • The number of professionals entering the jobs market in March 12 was 18% lower than February 12
  • Continuing the pattern of decline in job seeker numbers, this was also 62% lower than March 11
  • The time taken to place professionals into new job roles rose by 6 days in March 12 to 67 days
  • The average salary for those securing new roles in March 12 was £50,330.

Facts & Figures

Financial services job opportunities fall back to January level

The Morgan McKinley London Employment Monitor registered an 8% decrease from 3,056 jobs in February 12 to 2,797 new roles coming onto the market in March 12. This is also a 56% fall in availability of roles compared to the same time last year which registered 6,426 new vacancies in the City hiring market.

The number of available new financial services jobs across the whole of Q1 12 compared to Q4 11 has however risen by a modest 4% from 8,316 to 8,688.

The pool of professionals looking for financial services job opportunities in March fell in March 12 by 18% to reach 4,965 compared to 6,084 in February 12. This was also much lower (62%) than March 11 which saw a peak of 13,110 professionals interested in new roles.

Recruitment processes remain slow

The time taken to place professionals into new jobs roles, rose in March 12 by 6 days to reach 67 days compared to February 12.

The average salary of those securing new roles in March 12 dropped compared to salaries for those starting roles in February 12. Pay for new starts fell by 10% from £55,768 down to £50,330.

Insight: Andrew Evans, Operations Director, Morgan McKinley Financial Services commented:

“We are beginning to hearsome anecdotal indicationsfrom City employersthatthe marketis starting to regain some ofthe confidence that was particularly low atthe end of last year.However with the volume of new job vacancies acrossthe sector falling compared to a month ago, and a year ago itis clearto see thatthe current hiring market does not yet reflectthisslightincreased sentiment.

“Looking atthe permanent and temporary hiring marketsseparately,there are two slightly differing stories:the permanentjobs market hasremained very challenged, whilst activity in the temporary market has been significantly more active and more stable although there is no actual growth.Thisreflectsthat some institutionsstill lack the confidence and top levelsign-offto take on permanent headcount.

“If we are going to take any form of good news out of our March 12 data, itisthatlooking back over Q1 12 compared toQ4 11, we can see a 4% increase in the number of available rolesin theCity. In the grand scheme ofthingsthough,thisis a marginal improvement asitisso far below the currentrolling average and way offthe actual job vacancy numbers we saw throughout 2007. Hiring may well continue but very likely at a gradual pace as any positive sentimenttendsto be immediately cancelled out by some form of negative market commentary.We are genuinely working in a confused and uncertain market.”

“Whilst there were encouraging signs in March such as UK manufacturing sector growth andThe Lloyds Bank Wholesale Banking & Markets Business Barometer showing greater confidence,thisis continually counter-acted by negative indicatorssuch asfalling house prices and disappointing retailsales volumes. Mervyn King hasrecently spoken of a ‘bumpy road’ forthe economy, and our data acrossQ1 12 certainly showsthisto be the case.

“In addition,some institutions are still quietly going through headcountreductions which can actually discourage movement acrossthe candidate market, especially amongstthose who have relatively secure jobs. The increasing time taken to place professionals in new jobsin March 12 from 61 to 67 daysillustrates thatsign-off processes are remaining slow untilthese programmes ofreducing employee numbers, however small, are complete.

Following this, we expect to have a clearer idea of demand across the market, however this may well take until the summer months.”

-ENDS-

Further press information:

Alexandra Fleming                                                        Aimee Carmichael   

Tel: +44 (0)7825 056 919                                          +44 (0)7740 354 625

Email: afleming@morganmckinley.com               acarmichael@morganmckinley.com

Alternatively, please contact the Press Office on +44(0)207 092 0260

Notes to editors:

Statistical methodology

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.

Salaries

Chart 3 illustrates the average percentage change between original salary and new salary offer for professionals securing new roles each month.

About Morgan McKinley

Morgan McKinley is a global professional services recruiter connecting specialist talent with leading employers across multiple industries and disciplines.

With offices across the UK, Europe, the Middle East and Asia-Pacific, Morgan McKinley’s professional recruitment expertise spans across banking & financial services, commerce & industry and professional services. Morgan McKinley is a preferred supplier to many of the major employers in its specialist sectors, as well as thousands of smaller local employers.

Morgan McKinley is a fully owned subsidiary of Premier Group which was recently named in the 50 Best Small and Medium Workplaces in Europe by the Great Places to Work Institute in 2012.

www.morganmckinley.co.uk   

Hakan Enver's picture
Managing Director
henver@morganmckinley.com