JOB GROWTH LEAVES LONDON SUFFERING
JOB GROWTH LEAVES LONDON SUFFERING FROM SKILLED CANDIDATE DROUGHT
Currently 10 skilled financial and professional services candidates for every 9 vacancies in the Capital
Forecast to rise to 10 candidates for every 12 vacancies in Q4 2010
At the bottom of the downturn there were 10 skilled candidates for every 3 vacancies (Q1 2009)
Growth within Interest Rates, Structured Rates and Structured Credit has increased demand for skills and experience in these areas
London will officially enter a candidate short market in Quarter 3 2010 according to research from Ambition, the global financial and professional services recruitment firm.
There are currently 9 vacancies for every 10 skilled candidates actively looking in London. This has risen from 3 vacancies per 10 candidates at the bottom of the economic downturn in Quarter 1 2009. Applying this growth to the rest of 2010, London can expect to have 10.3 vacancies for every 10 active candidates in Quarter 3 and 12 vacancies per 10 candidates by Quarter 4.
Within the financial services industry operations, middle office, risk and compliance, and product control candidate numbers have been in decline since the second half of 2009. Growth within the Interest Rates, Structured Rates and Structured Credit markets over the last seven months has meant increased demand for these skills and experience. Candidates with experience in Interest Rates along with CDS and CDO product re-structuring have been snapped up leaving demand beginning to outstrip supply.
This is in stark contrast to the graduate market in which 75 candidates are applying to every financial services and investment banking graduate job.
Tim Gilbert, UK managing director of Ambition, said: Businesses now demand more full and varied skill sets from candidates in order to maximise their value to the business. Any candidate that fits the bill is being snapped up and well rewarded in order to retain them. This has left a very shallow talent pool.
Were not expecting a fall in the number of jobs available in London. But even if job growth does slow slightly there wont be huge numbers of experienced candidates suddenly appearing on the market. This will leave businesses in a number of sectors fighting over talent. As a result you can expect wage inflation particularly base salary inflation and more valuable counteroffers being handed out.
Firms within the professional services are also suffering from a lack of experienced candidates. Many candidates are staying in their current roles, waiting for long overdue salary reviews to be announced in the next few months. Similarly, many in the legal sector are being offered attractive packages and more diverse roles in order to deter them from moving.
Skilled temporary candidates within the financial services industry have seen their rates rise dramatically over the last six months as a result of the increased demand. Experienced product controllers who were receiving 300 - 350 per day in January can now expect to command 350 to 450 per day. A median increase of 23%.
On the permanent side, skilled financial services candidates are being awarded generous counter-offers in order to remain in their roles. Increases of 10,000 - 15,000 on top of base salaries of around 55,000 are not uncommon.
Tim Gilbert continued: Financial services firms are leading the charge in London and this sector will be the first to officially enter a candidate short market. But legal and professional services firms arent far behind.
The government has stated it expects jobs growth in the private sector over the next five years as a result of the austerity measures. In London there are early signals that this trend is underway and the private sector candidate pool cannot support the demand.
Financial and professional services companies are particularly struggling with candidate supply. Skilled candidates looking for work in banks, brokerages, hedge funds and asset managers have the best opportunities with 9.6 jobs per 10 candidates currently available in the sector. This is set to rise to 11 jobs in Q3 2010 and 13 jobs in Q4 2010.
In the professional and legal services, support staff are also benefiting from the candidate short environment. Candidates actively job-hunting for finance and marketing roles in this sector currently have 8 jobs per 10 candidates. This will rise to 9 jobs in Quarter 4 2010 and 11 jobs in Quarter 4 2010.