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Financial Services Hiring Falls 33% in London Says Morgan McKinley

Financial Services Hiring Falls 33% in London Says Morgan McKinley

“Monitoring the pulse of the City jobs market for eight years”

Continued economic issues affect financial services hiring as job opportunities fall 33%

LondonEmployment Monitor June 12 Highlights

The latest London Employment Monitor registered a 33% decrease in the number of financial services jobs newly available in the market from May 12 to June 12

Compared to June 11, this was a decrease of 53% in the number of roles coming onto the market

The number of professionals starting the search for a new position declined by 3% month-on-month

Compared to the same time last year, this was a 60% drop in the number of people entering the jobs market

The average salary for those securing new jobs in June 12 dropped by a negligible 1% month-on-month and by 4% from June 11.

Slowdown in financial services hiring

The London Employment Monitor registered a 33% month-on-month drop in the number of jobs available in June 12 across the city’s financial services sector, falling from 3,915 down to 2,630 – the lowest number of vacancies in the City’s jobs market since December 10. Compared to the same time last year, the number of newly available positions has dropped by 53% from 5,544 down to 2,630.

Over the same period, the number of professionals entering the jobs market declined by 3% from 6,419 in May 12 to 6,251 in June 12. This was a large drop (60%) from the number registering their interest in new roles in June 12 which totalled 15,671.

Andrew Evans, Chief Operations Officer, Morgan McKinley Financial Services said,

“With recent economic indicators around the globe turning negative, a drop in the number of job vacancies being released across the City in June 12 is unsurprising. The scale of drop however, at 33% is more of a surprise. The relative economic stability we saw in Q1 led to a short period of increased job opportunities between March and May, however this recent jobs decline is clearly a reality check. Bank of England Governor, Mervyn King earlier this year made reference to economic recovery being & lsquo;slow and uncertain’ with a & lsquo;zig zag pattern’. June 12 is a reflection of this forecast. Whilst the City hiring market is stabilising to an extent, job volumes are clearly still at the mercy of global economic conditions.

“In addition to the recent negative indicators, there has also been a new wave of further headcount reduction announcements across the sector. Economists at the Organisation for Economic Co-operation and Development anticipate that the UK is likely to have remained in recession throughout Q2 12, despite expectations to the contrary. Ongoing difficulties across the Eurozone continually chip away at levels of confidence in Britain which, as we have mentioned previously always has a knock-on effect on the financial services hiring market. This is echoed by the REC KPMG report on jobs which highlights a very rapid fall in permanent job placements across multiple industries in June 12.

“Some roles inevitably require an investment of time to find the right person, however delays of several weeks, sometimes into months is more characteristic of the current hiring market for non-business critical roles. Regulatory and corporate governance roles remain a relative bright spot as are project management/ business analyst roles on the contract side. Banks and asset management houses continue to prioritise these requirements and are hiring accordingly.”

Compensation remains stable to attract key talent

Salaries for those securing new roles throughout June 12 remained relatively stable, with a 1% drop month-on-month. Compared to the same time last year this is a 4% increase &pound52,090 to &pound53,976. It was also just above the monthly average salary for those starting new jobs over the last 12 months, which was &pound52,156.

Andrew Evans explains,

“With the outlook for job availability once again looking highly uncertain moving into Q3 12, job seeker numbers reflect this mood with the total number of professionals in the hiring market totalling 6,251 – a 60% drop compared to the same time last year. It’s important to remember however, that a large proportion of these individuals are testing the water so it’s impossible to summarise the market by job opportunities vs. number of people out of work.

“The fact that the drop in professionals looking for new roles is only 3% month-on-month suggests that a number of individuals are still open-minded about the impact of recent economic reports on hiring. Compensation levels remaining steady is an indication that there is still a degree of competition among financial institutions in their desire to hire only the best in the market. This is keeping salaries stable for those who are successful in securing new roles.”

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