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Monitoring the pulse of the City jobs market

Economic factors continue to impact City jobs market in May 11

The Morgan McKinley London Employment Monitor registered a 19% decrease in job opportunities new to the financial services jobs market in May 11 compared to April 11

This was a 9% drop from the number of roles newly available in the hiring market in May 10

At the same time, the number of professionals open to new job opportunities in financial services rose by 39% month-on-month in May 11

This was a 29% increase in professionals entering the jobs market compared to the same time last year
The average salary for those securing new jobs in May 11 was 1% higher than for those accepting job offers in April 11

Financial services job opportunities decline month-on-month

The London Employment Monitor in May 11 showed some volatility in the hiring market with a month-on-month decrease of 19% in the number of available jobs in financial services from 6,426 to 5,229. This was also a decline on May 10 which registered 5,733 vacancies and dropped by 9% in May 11.

At the same time, the number of professionals open to new roles in financial services increased in May 11 by 39% to 15,150 from 10,910 in April 11. Compared to the same time last year which registered 11,730 this was a 29% increase.

Andrew Evans, Chief Operations Officer, Morgan McKinley Financial Services commented,
The current level of hiring activity in the month of May in isolation saw a fairly significant softening of job opportunities in financial services in London. While there are pockets of the market that are still seeing month-on-month increases in job vacancies, there remains some uncertainty about the pace of economic recovery. What is most striking is the speed at which the City jobs market appears to be affected by fluctuations in market confidence. This is very much underlined by recruitment activity not following the typical pattern for this time of year it is more usual in Q2 to see a rise in job availability.

As well as the effect of economic uncertainty, Q2 would appear to reflect the apparent reduced impact of post-bonus movement compared to pre-recession years. Traditionally, financial institutions tend to anticipate a certain amount of attrition after bonuses have been paid out each year. However anecdotal evidence indicates that lack of clear visibility over the rest of this year has led to many professionals choosing job security and remaining in their current roles in Q2. This has created fewer vacancies to be filled. In addition, as a result of changes to the structure of compensation packages for some City employees we are now seeing the effects of deferred bonuses. This has provided an incentive for some individuals to stay in their current roles.

The London Employment Monitor did however record a 39% month-on-month increase in the number of professionals noting an interest in City opportunities. Clearly there are two types of people here those who are actively looking and those who are merely interested and simply keeping an eye on the market. Whilst job security may well be important, professionals still remain open to new opportunities. After seeing a buoyant level of hiring activity in Q1, individuals do not want to close themselves off from potential opportunities for career advancement.

Compensation remains stable
The average salary for those securing new jobs in Londons financial services sector in May 11 was 52,749, a small (1%) increase on 52,228, the average monthly pay for individuals taking up new job offers in April 11.

Andrew Evans continued: Salary levels month-on-month continued to be relatively stable for those starting new roles in May 11. Hiring managers are relatively cautious in making final decisions so professionals of the very highest calibre are in the best position to push up salaries in certain areas. One of the key issues around compensation is the increasing need to negotiate with professionals over deferred bonus payments. This could see a change from normal hiring and remuneration practices particularly at the senior end of the market.


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