London Employment Monitor March 13 highlights:
Strong quarter ends with less hiring
Morgan McKinley’s London Employment Monitor registered increased recruitment activity in Q1 13 compared to Q4 12 across the financial services sector. Job availability rose by 25% from 5,859 new roles in Q4 12 to 7,308 in Q1 13.
However despite this, March 13 alone saw hiring decrease; month-on-month, job opportunities across the City fell by 7% from 2,583 to 2,394. Compared to the same month last year when 2,797 jobs were registered, there has been a 14% decline, but this has been the smallest decrease since June 10 – June 11 as shown in Chart 3.
The job seeker market marginally slowed down in March 13 with a 7% drop month-on-month as the number of professionals interested in moving jobs fell from 5,266 down to 4,884. Compared to the previous year, there was a similar level of hiring activity with only a 2% drop from 4,965 in March 12.
Hakan Enver, Operations Director, Morgan McKinley Financial Services commented:
“Despite the decrease in jobs being released in March 13, there is still some positive news with financial services vacancies in Q1 13 showing an improvement on Q4 12. This data indicates a good start to the year, but March 13 was negatively affected by Easter coming earlier than usual, causing it to be a shorter working month and disrupting the process of releasing new roles to the market.
“Further analysis does show however, that the 14% decrease in job opportunities compared to March 12 is the smallest yearly decrease seen in City hiring since June 10 – June 11. Therefore there are signs that even when job availability falls, it is not declining quite as consistently as previous yearly comparisons. For example, the 7% drop from February 13 to March 13 is an improvement on the 9% decrease from February 12 to March 12.
“This picture of the hiring market is backed up by what employers are telling us; that there is more appetite to hire and the process is more fluid with fewer obstacles to bringing new talent on board.”
Pay continues to be competitive
The average change in salary for those securing new jobs during March 13 was an increase of 17% indicating that competitive salary offers are out there for sectors of the market where professionals are in high demand. Governance related functions including risk management, compliance and internal audit, as well as change management - specifically focusing on finance - are areas where talent is still sought after.
Hakan Enver continues:
“The significant rise in salary offers in March 13 is positive for the strength of the jobs market. There are further indicators of confidence when it comes to remuneration; not only have we seen more dual offers for City job seekers, but many professionals are now also more self-assured in pushing for much higher pay than they are currently earning. This is in line with a recent survey to be published by Morgan McKinley highlighting that individuals view basic salary as more important than a bonus when job hunting.
“The small downward fluctuations in hiring during March 13 shouldn’t detract from the bigger picture of the improvement across Q1 13. Increased job seeker activity is anticipated in Q2 13, partly due to the fact that this is the end of ‘bonus season’ which encourages more people to consider their career options. This is underlined by the recent 94th CBI/PwC Financial Services Survey which highlights that overall confidence in financial services has improved in Q1 13 with “stronger business”, “fresh growth” and “stronger employment plans” being reported.”
Chart 1: Financial services jobs new to the market
Chart 2: Job seekers available (both in and out of employment)
Chart 3: Percentage change in job availability compared to same month of previous year
Chart 4: 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 employment. Statistics for the full market are derived using Morgan McKinley’s market share.
Chart 3 shows the percentage change in job availability from one month compared to the same month in the previous year.
Chart 4 illustrates the average percentage change between original salary and new salary offer for professionals securing new roles each month.
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