City employers thinking longer term with permanent roles outnumbering contract positions
As a sign of market optimism, City businesses are increasingly seeking permanent staff over shorter term contract placements. The findings of the Robert Walters City Jobs index1 shows that in the first quarter of 2015, Financial Services firms were on the hunt for 10,980 permanent candidates and 9,015 on contract terms. Compared to the same period in 2014, this represents a 32% increase in the number of permanent roles available and a 10% decrease in the number of contract positions.
Compared to the previous quarter (Q4 2014), the number of permanent job positions available in Financial Services has also risen much more than contract positions, with a 25% rise in permanent places compared to just a 12% rise in contract roles available.
Colin Loth, managing director for London and the South East, commented, “There is a sense of growing optimism despite the obvious uncertainty in the run up to the General Election. The findings of our job index demonstrate this improving confidence, and it is particularly encouraging to see an increasing volume of permanent positions available, with businesses now taking a longer term approach to their recruitment strategy.”
Ratio of jobs v.s. candidates shows ongoing skills shortage
The Index, which tracks the number of jobs available and candidates seeking jobs in the City of London month-by-month, also shows that in March alone there were a total of 9,870 job opportunities available and approximately 6,200 candidates job hunting across all professional sectors, meaning there is an average of 1.6 jobs available for every person looking.
Compared to February, there has been a 7% decrease in jobs available and a 3% increase in candidates looking for jobs, but despite this small reduction in the number of jobs available, candidates still have a huge choice of job opportunities in the City, meaning employers face ongoing pressure to find and attract candidates with the desired profiles and skills.
Loth added, “Candidates continue to have a rich choice of job opportunities in the City, but for employers there is stiff competition to find the best talent. As candidates begin to feel more confident about career stability we expect the number of active job seekers to increase. However, following several years of cut backs in training and development the issue of skills shortages is set to remain for some time.”