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Morgan McKinley London Employment Monitor January 13

London financial services sector starts the year with a significant rise in job availability

Morgan McKinley London Employment Monitor January 13 highlights:

The London Employment Monitor registered a 76% increase in newly available financial services jobs from December 12 to January 13

Compared to January 12 however, there was a decrease of 18% in the number of new job vacancies

Professionals newly entering the jobs market in January 13 rose by 74% month-on-month

Despite this, there was a 26% fall in job seekers compared to the same time last year

The average change in salary in January 13 for those securing new positions was an increase of 24%.

January shows seasonal rise in job vacancies

Morgan McKinley’s London Employment Monitor registered an increase from 1,323 new jobs in December 12 to 2,331 in January 13 – a rise of 76%.  However, compared to January 12 the number of new jobs in the market actually fell by 18% from 2,835.

The number of professionals entering the January 13 jobs market was up by 74% to 5,065 compared to December 12 when 2,915 job seekers were registered in the market.  This was however a 26% decrease on the previous year when 6,827 professionals were looking for new roles in January 12.

Hakan Enver, Operations Director, Morgan McKinley Financial Services commented: “January 13 once again illustrated the pattern of renewed hiring activity that we see at this time of year.  Hiring managers and key decision makers returned to work, preparing to release new jobs to the market following budget and headcount restrictions limiting hiring in December 12, as we mentioned in last month’s Employment Monitor. 

“There are broadly two categories of hiring manger looking for new candidates at this point in the year: firstly, those who pre-empt the seasonal post-bonus attrition that is typically seen across the market in Q1. Secondly, there are those who knew they would need more resource, but were restricted from hiring until the New Year.  Adhering to regulatory change continues to be where the hiring market is busiest compliance hiring is focused on anti-money laundering and prevention of financial crime following a number of high profile cases linked to global socio-economic problems such as organised crime and terrorism.  Furthermore, the IT market is seeing demand for those with expertise in finance and risk to create more sophisticated reporting solutions.

“While a 76% increase in job availability may seem like a sign of an improving market, looking back at 2012, job availability fell to a real low across the City, and the 2,331 jobs in the market in January 13 remains relatively low compared to 2010 and 2011. This lowered level of job availability underlines research from the CEBRwhich forecasts that London is set to lose 13,000 financial services jobs this year.

“From the job seekers’ perspective a 74% rise in professionals entering the hiring market is partly attributed to some renewed confidence but also a lack of patience those who anticipate small or zero bonuses try to get ahead of the game and make the move before peers who might be awaiting bonus payments later in the quarter.  In addition, the market appears to have peaked with redundancy announcements – professionals from desks that have closed and teams laid off in Q4 12 are now coming into the market hoping for a new opportunity.”

Average salary change increases

The average salary change for those securing new roles in January 13 increased, rising 24% compared to the 7% rise for those who successfully found new jobs in December 12.

Hakan Enver continued: “We continue to see pay rising for those successfully landing new jobs each month, however in January 13, this was a particularly substantial uplift of 24%.  This level of increase was only seen a couple of times last year highlighting that despite the relatively low level of job availability across the City, where hiring is happening, it is focused on picking up the best people available in the market who are able to command strong salaries.  This is also emphasised in our recent London Financial Services Salary Surveywhere a third of all respondents stated they expect to see salaries increasing this year.

“Looking ahead from this cautiously positive start to the year, we anticipate that job seeker numbers will remain at this higher level. From a job availability perspective some pockets of the market will continue to hire in the next couple of months, particularly where there is regulatory need across governance, operations, finance, and IT where large-scale projects are now underway.  However, there is less visibility over how economic issues and the impact of LIBOR penalties for financial institutions may play out.  It’s very possible we may continue to see a fluctuating hiring market throughout the first half of this year.”

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