Morgan McKinley London reports 4% MoM rise in available jobs in August
Morgan McKinley London has released its employment monitor for August 2016.
The generally sleepy month of August surprised everyone with its 4% month-on-month rise in both jobs available and job seekers.
Hakan Enver, operations director at Morgan McKinley Financial Services, said, “The British ethos of ‘keep calm, it's business as usual’ is clearly on full display in this month’s numbers.
“Factoring in Brexit, summer breaks and the bank holiday, a 4% increase across the board is remarkable.”
With the pound having been at its weakest against the US dollar in 31 years, as well as growing concerns about terrorist attacks on the continent, more Britons opted to take staycations during this year’s bank holiday breaks. In all, 6% more than last year spent their holidays in the UK. Enver commented, “I suspect the staycation trend influenced this month’s job seeker data, as more people opted to stay closer to home. This allowed more time for professionals to consider their careers and therefore, register their interest with certain recruitment organisations.”
A few short months after Brexit, the company says that a sense of optimism has returned to the City. A recent EY report found that among the largest financial institutions, fears of post-Brexit chaos have largely subsided, concluding that “the immediate impact of the referendum has not been as stark as many initially feared”. A rising pound and news that unemployment has dropped to its lowest rate since 2005, coupled with Prime Minister Theresa May’s announcement that there will be no second referendum on EU membership, have all added to the sense that no crisis is forthcoming. Some are going even further, speculating that relief from onerous EU regulations like bonus caps and tax-levies could give the British financial industry a healthy boost. BBVA in particular has come out against the caps, which were put in place in 2014, saying they are restricting the bank’s ability to attract the best executives from the technology sector.
The outlook, however, isn’t all rosy, Morgan McKinley states. Year-on-year jobs available decreased by 20% and job seekers fell by 6% year-on-year, mirroring the trend of decline during the first half of 2016 (H1).
Enver stated, “There’s no question that 2016 has been a tougher employment climate than 2015.
“And the ongoing uncertainty as we wait to see the terms of the UK’s negotiations with the EU is clearly casting a shadow over H2”.
Two key negotiation items remain foremost on everyone’s minds. The first is the right of EU citizens to work in London. TheCityUK said, “Free movement of high quality financial and related professional services talent across the EU is essential to the UK remaining a leading financial centre.”
The second issue of concern is the retention of passporting rights. Though it has no intention of relocating its headquarters from London, Lloyd's Chairman John Nelson has made clear that the loss of passporting privileges would require Lloyd’s to move part of its business to an EU member state.
Enver commented, “Failure to protect passporting and to secure the right of EU citizens to live and work in London would certainly have ripple effects on City employment.
“Which is why we’ll continue to see industry and political leaders make both issues central parts of negotiations. And the stronger our economy, the stronger our negotiating position”.
Though Berlin sought to capitalise on the Brexit vote with a snazzy advertising campaign urging London startups to relocate to the German capital, London startups out-raised it by over twice as much funding in H1.
Enver said, “London is where innovation meets investment. It speaks to the clout of our financial sector that we outperformed other known innovation hubs like Stockholm and Berlin.”
The London-based leading venture-capital firm Northzone announced that though investors worldwide voiced concerns about Brexit, it was able to attract 300 million euros in investment, a record amount over the firm’s 20-year existence.
“This has been a tumultuous year so far for the technology market, in particular within Financial Services,” said Cem Baris, technology, sales and analytics director at Morgan McKinley. “With so many factors coming into play there’s pressure on the Financial Services industry to revolutionise its outlook on how it interacts with its customers, keep up with the competition whilst dealing with intense strains to cut costs.”
As the fintech industry vies to revolutionise banking, Britain is determined to lead the charge. A recent decision by the Competition & Markets Authority (CMA) is expected to help achieve that goal: The CMA has set a 2018 deadline for UK banks to share, with permission, customer data with third parties so that customers can price compare banks.
Baris added, “The continued rise of the challenger banks and Fintech companies, which on the whole boast strong digital propositions, are the driving force in the consumer and corporate banking world. Low interest rates leave investors to consider options, which gives innovative and customer-friendly led brands coming to market the biggest advantage.
“Therefore, roles in digital development and design, such as UX designers, UI design and front-end development remain high in demand. With a strong digital proposition comes bundles of quality customer data, the race to even greater sophistication of customer insight means data engineers, data analysts, and data scientists are sought after.
“Salaries have remained steady. The big companies have become savvy to this generation of talent, as it turns out money is not the only factor. On their list of needs and wants candidates are assessing how creative, agile, fast paced environments and teams are, and do they have latest technology and processes.”
Enver stated, “During the month of August 16, the average salary change for professionals moving from one position to another stayed at 16%. Whilst still an attractive increase, firms are beginning to stand their ground and be more conscious of costs when hiring new talent.”