8% increase YoY in available jobs, reports Morgan McKinley London
Morgan McKinley London has released its Employment Monitor for February 2016.
The monitor reported that available jobs grew by 8% year-on-year to 8,325. On a month-on-month basis, there was a 9% decrease, although looking at the January to February numbers from 2015, there was a similar drop month-on-month. Job seekers increased month-on-month by 2% to 17,219.
“From a recruitment perspective, February did feel quiet compared to January,” said Hakan Enver, operations director at Morgan McKinley Financial Services. “As the numbers confirm, this was more psychological than anything. The London markets had a shocker of a start to the year as markets headed south, but simultaneously, demand for talent and job seeker activity was off the scale in January.”
Morgan McKinley reported that the January surge in job seekers flattened out in February remaining slightly positive, the long-term trend remains strong with job seekers willing to look for new challenges.
“The growth in jobs was driven by the asset management industry,” added Enver. “There is growth and demand in that sector and the UK is in prime position to take advantage of this trend, which we believe will be a theme throughout 2016.”
According to Morgan McKinley, asset management is proving to be the top performer. This sector is showing both top and bottom line growth, which in 2014/15 resulted in a record amount of mergers and acquisitions, with many of these made within Europe. The UK and the City in particular stood out as an attractive location to global asset managers. The City has the relevant industry infrastructure in place and gives asset managers access to the best talent.
“For job seekers in 2016, asset management is the industry to be in,” said Marcus Williams, manager of Morgan McKinley Investment Management Finance and Front Office. “Professionals with multi-lingual skills and relevant industry experience are in a strong position to secure attractive packages.”
Asset managers are now looking for talent across the business. For front-office staff, there is a demand for active portfolio managers and analysts. As asset management firms of all sizes seek to expand internationally, there is also demand for support roles, particularly for those with relevant skills in navigating the regulatory environment.
“Linguistic ability is an advantage when influencing business leaders in Asia,” commented Williams. “This is even more important in mid-market asset managers, who don’t have offices in these locations. Therefore, those able to converse in these areas are able to command the top-salaries within the industry.”
The setting of the date for UK’s referendum on remaining in the EU made Brexit one of the main news items for the month. The vote will be on the 23rd June. Sterling reacted to the setting of the referendum date by declining against other currencies, which indicates that the markets consider the outcome of the vote uncertain, Morgan McKinley claim.
Enver said, “Referendums are rare events and they are very emotional affairs for voters, as this one is tight and both sides feel it is winnable we’re likely to see a heating up of rhetoric on both sides as we approach the date.”
According to the EY Item Club, mortgage lending and consumer credit are set to grow this year. Business borrowing is also likely to expand after being in the red for several years.
Omar Ali, UK financial services managing partner at EY, commented, “2015 was the first year for some time that the underlying economic fundamentals were good enough to support an across-the-board return to growth in borrowing by consumers, home buyers and firms.”
Employers are continuing the trend of cutting bonuses in favour of increasing fixed pay. This was the finding according to a study by Mercer, which reported a 5% decrease in bonuses and a similar rise in fixed salaries.
“Banks are contesting the regulatory changes to bonuses,” said Enver. “They will remain a part of pay in the financial industry, but for now, the trend is clearly towards fixed pay.”
Financial services jobs new to the market February ‘16
Professionals seeking new roles February ‘16
Average change in salary each month February ‘16