Financial services jobs decline by 8% in March 12 but rise overall from Q4 11 to Q1 12
Financial services jobs decline by 8% in March 12 but rise overall from Q4 11 to Q1 12 says The Morgan McKinley London Employment Monitor.
LondonEmployment Monitor March 12 Highlights
• 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.
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.
Andrew Evans, Chief Operations Officer, Morgan McKinley Financial Services commented:
“We are beginning to hear some anecdotal indications from City employers that the market is starting to regain some of the confidence that was particularly low at the end of last year. However with the volume of new job vacancies across the sector falling compared to a month ago, and a year ago it is clear to see that the current hiring market does not yet reflect this slight increased sentiment.
“Looking at the permanent and temporary hiring markets separately, there are two slightly differing stories: the permanent jobs market has remained very challenged, whilst activity in the temporary market has been significantly more active and more stable although there is no actual growth. This reflects that some institutions still lack the confidence and top level sign-off to take on permanent headcount.
“If we are going to take any form of good news out of our March 12 data, it is that looking back over
Q1 12 compared to Q4 11, we can see a 4% increase in the number of available roles in the City. In the grand scheme of things though, this is a marginal improvement as it is so far below the current rolling average and way off the actual job vacancy numbers we saw throughout 2007. Hiring may well continue but very likely at a gradual pace as any positive sentiment tends to be immediately cancelled out by some form of negative market commentary. We are genuinely working in a confused and uncertain market.”
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.
Andrew Evans continued:
“Whilst there were encouraging signs in March such as UK manufacturing sector growth and The Lloyds Bank Wholesale Banking & Markets Business Barometer showing greater confidence, this is continually counter-acted by negative indicators such as falling house prices and disappointing retail sales volumes. Mervyn King has recently spoken of a & lsquo;bumpy road’ for the economy, and our data across Q1 12 certainly shows this to be the case.
“In addition, some institutions are still quietly going through headcount reductions which can actually discourage movement across the candidate market, especially amongst those who have relatively secure jobs. The increasing time taken to place professionals in new jobs in March 12 from 61 to 67 days illustrates that sign-off processes are remaining slow until these programmes of reducing 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.”