Job availability in the City up 67%
The April 2014 London Employment Monitor reveals a 67% year-on-year rise in City job opportunities, with 8,955 available positions, compared to 5,355 recorded in April 2013. Month-on-month figures show a dip of 3% in April 2014 compared to March – when 9,261 vacancies were available - the result of extended leave over the long Easter weekend.
On the candidate side, the Easter break also had an impact – 7,263 job seekers were recorded in April 2014, a fall of 23% compared to March’s 9,373 candidates. Year-on-year, the picture is more positive, with a 41% increase in those pursuing new roles, compared to April 2013 when 5,146 active job-hunters were reported.
Hakan Enver, Operations Director, Morgan McKinley Financial Services, commented:
“The two bank holidays in April had a slight negative impact on hiring, with job vacancies down by a marginal 3% compared to March. This is a trend that we predict will extend to May as well, given two more bank holidays this month. Despite this seasonal dip, it’s not indicative of the jobs market as a whole. The annual growth figure of 67% is proof of the massive resurgence we’ve seen in the permanent hiring market, as institutions seek to invest in long-term talent to drive business growth.
“With the announcement of 19,000 job cuts within Barclays in 2014 in response to its underperforming investment banking arm, and other banks reporting a drop in profits, there is naturally going to be a degree of unease in the financial services sector over the coming months. The impact is likely to be felt within fixed income, in particular regarding the bonds market, with less recruitment anticipated in this asset class as a result. However, while investment bank profits are down in the majority of organisations, revenues are up within their respective asset management, wealth and retail arms, which are in a much better shape, with all of these areas experiencing a healthy increase in job flow.
“In terms of the roles most in demand, organisations are seeking risk and compliance specialists, with an increase in funds compliance advisory roles and distribution compliance roles within the last month. This has been at the senior end of the spectrum due to increased regulation being implemented by the FCA such as MIFID 2, UCITS 5 and UCITS policies, and the ongoing implementation of AIFMD.
“Going forward, we predict that the upward trend in City jobs growth will continue, particularly in light of the recent ONS report showing a 3.1% rise in GDP for the first quarter this year, compared to 2013, together with research by Nielsen showing UK jobs confidence is at a 6.5 year high. Considering this time last year experts were talking about the possibility of a triple dip recession, the financial services sector has definitely bounced back.
“However, one possible dark cloud on the horizon could be the introduction of the financial transaction tax (FTT) proposed by the European Union. While the UK is not planning to implement the tax – and George Osborne is opposing it - its adoption by other EU member states from the beginning of 2016 could damage the green shoots of recovery and have a negative effect on City jobs.”
Employers warned to plan ahead for growth as salaries increase 21%
The average salary increase for those securing new jobs in April 2014 was 21%, compared to 20% in March 2014.
“News that average salaries are outstripping inflation for the first time in six years mirrors our own figures, which show average salaries were up 21% in April 2014, and up from 17% compared to the same month in 2013. With employees feeling more confident about their prospects, and the possibility of securing a better package elsewhere, City recruitment managers are advised to think ahead to ensure they avoid possible staffing gaps at a time when their businesses are planning for growth.”