Morgan McKinley London Employment Monitor: Strong trend in jobs market back on track
MORGAN MCKINLEY LONDON EMPLOYMENT MONITOR: Monitoring the pulse of the City jobs for over ten years
London Employment Monitor June 2015 highlights:
* Month-on-month figures in available jobs increase by 56%
* Month-on-month figures show a 26% increase in professionals seeking new opportunities
* Salaries increased by 19% on average for those securing news jobs in June 2015
* Morgan McKinley research shows an attractive career path for compliance professionals back on track
"The growth in jobs and opportunities that we have been predicting throughout 2015 is back on track,” says Hakan Enver, Operations Director Morgan McKinley Financial Services. “As we expected, the April-May figures turned out to be an anomaly, due to the short working month and the distractions of the general election.”
In June, professional opportunities rose by 56% month-on-month, wiping out and surpassing the dip in the previous month’s figures. “Overall, the first half of 2015 has been on a positive trend and we are seeing a huge appetite to recruit,” says Enver.
Professionals seeking new positions rose 26% month-on-month and the year-on-year figures were even more impressive with a significant increase of 120%. “There is a renewed confidence in looking for new opportunities and these were clearly on offer,” says Enver. “All the data we are seeing shows that there is a robust market for financial services jobs in the City. It’s an assertive market.”
Bumper wage increases
The past few months have been a bumper month for wages, with bonuses being paid out and a general increase in wages supported by low inflation. A report from the Resolution Foundation think tank showed wages rising at the fastest pace since 2007. “With the holiday season fast approaching, we may see some slowing down in the market, but overall there’s no reason why this strong trend in jobs and opportunities won’t continue in the second half of 2015,” concludes Enver.
The debate around bonus clawbacks is one of the few remaining headwinds facing the financial industry, with reports that regulators are planning on increasing clawbacks for senior managers to up to ten years. New clawback rules are likely to change the payment structure and bonus culture of the industry. “Clawback regulations will push up basic pay,” says Enver. “They are a challenge to banks as they increase costs and the industry is going to have to become more innovative about how it attracts and compensates new talent.”
Towards the end of June the crisis in Greece began to reach a climax&hellip yet again. Greek banks and the stock exchange closed prior to the Greek referendum, with no information as to when they may open again. “This is way past economics now,” says Enver. “It comes down to a matter of trust the trust between the differing parties has been completely eroded. Despite whatever agreement may be reached, implementation will be extremely difficult when there is such animosity between those involved.”
It’s all about the people
The demand for talent – something that we have been highlighting for some time in our monthly London Employment Monitor (LEM) reports continues. Finding skilled employees is becoming more and more challenging. The situation has gotten to the point that it is now driving M&A activity revealed in PwC’s 2015 global CEO survey. According to the survey, a quarter of M&A activity is now driven by skills shortages as companies make acquisitions in effect to buy the right people. Kevin Green, the chief executive of the Recruitment and Employment Confederation (REC) went even further, stating that: “There is an enormous skills crisis looming. We’re not producing enough young people with the skills employers are looking for.”
Finance and IT (discussed in-depth in last month’s LEM) were mentioned as some of the sectors with the most acute skills shortages and those with the necessary skill set can literally “name their price”. To some degree, this also applies to the Compliance field.