Banks review hiring needs at end of half year

Highlights
New financial services vacancy numbers in London continued to show strong growth in June 07, up 15% on June 06 levels

Compared to the previous month (May 07), new vacancy numbers registered a slight drop of 3% and candidate availability fell 1%

Figures indicate that banks have been taking stock of their recruitment needs in June following an exceptionally strong first half year of hiring and summer seasonality factors are starting to take effect

Although candidate availability was up 37% on June 06 volumes, the increase in flow was still not enough to bridge the ongoing gap between demand and supply

The average City salary rose 2% compared to June 06 levels with middle market professionals showing the strongest same month, year on year growth, increasing 6%.

Banks take stock
Whilst job growth in the City of London continues to rise at an exceptional rate, the latest figures from Morgan McKinleyís London Employment Monitor indicate that investment banks have been taking stock of the elevated levels of hiring they have carried out over the first half of the year and are reviewing H2 requirements. Likewise, seasonality factors are starting to come in to play as the City enters what is traditionally the quieter summer period.

New vacancy numbers for June 2007 highlighted another month of strong growth in the City jobs market, recording a rise of 15% compared to June 2006. These figures reinforce the continued confidence in Londonís financial services industry.

Robert Thesiger, COO Europe of Morgan McKinleyís parent company, Imprint Plc comments:

ìThe ongoing strength of the financial services job market is a given but what is of note here is that the latest figures suggest minor seasonal adjustments have started to emerge combined with the need to assess H2 requirements.

ìThis is to be expected given the extent of the increases in hiring activity we have witnessed in this sector over the last six months on top of the already strong rises that occurred throughout the previous year. These figures suggest that some firms are taking their time to bed in new recruits and review their hiring needs for the second half of the year.î

Uplift in basic salaries continue
Basic salaries continue to show a slight uplift on 2006 levels with the average City salary rising 2% in June 2007 compared to the same time the previous year. Middle market professionals showed the strongest year on year growth, with an increase of 6%. In 2007, compensation packages have continued to grow on 2006 levels as the financial services skills shortage persists. However as previously reported, firms are not relying solely on monetary offerings to attract and retain the talent they need.