Further deterioration of Londonís financial services hiring market

Highlights
A continuing lack of confidence in the global financial markets prompted further deterioration of Londonís financial services recruitment market during
December 08

As expected, the number of new job vacancies opening up within the City fell by 65% versus the same month the previous year (December 07)

There was also a drop of 52% during December 08 compared with November 08, representing the sixth consecutive month of decline in the number of new job opportunities within the City

The number of candidates who began looking for a new role was down 15% on the same month the previous year (December 07) and 35% versus November 08 as fewer vacancies and worries about the health of the economy deterred people from changing jobs

Those individuals who did secure a role during December 08 took an average of 76.3 days – almost a month (28.5 days) longer than their counterparts did a year ago (December 07)

The average City salary registered 49,420, down 1% compared with the same month the previous year (December 07).

New job vacancies in the City fall further
During December 08, Londonís financial services industry continued to experience a serious lack of confidence which prompted further weakening of the sectorís hiring market. The number of new job vacancies coming onto the market fell 65% compared with the same month the previous year (December 07). This was also a 52% drop versus November 08.

There were 15% fewer individuals registering their interest for a new role during December 08 compared with a year ago (December 07) and 35% less than the previous month (November 08). This fall can be attributed to a number of people choosing to remain in their current role rather than voluntarily enter the job market. For example, those who feel secure in their current role and those who are likely to receive a bonus payment in the forthcoming bonus round are less willing to move.

Candidates who did secure a new position during December 08 took an average of 76.3 days to do so – almost a month longer (28.5 days) than their counterparts did a year ago (December 07). This is further confirmation of just how tough the current hiring market is for candidates.

Robert Thesiger, CEO of Morgan McKinleyís parent company, Imprint comments: ì2008 proved to be an unprecedented year for the financial services industry and for recruitment within the sector. The momentous events which have occurred during the past 12 months have changed the shape of the financial services landscape forever and the level of uncertainty within the sector has translated into a lack of confidence across all areas of the industryís recruitment. The war for talent is over - employers now have a much wider pool of talent to choose from and candidates are facing fierce competition for the available roles.

ìAs expected, during December 08, there was further deterioration of the City jobs market resulting in hiring levels being reduced to a fraction of what they were a couple of years ago. Currently, confidence levels amongst candidates is so low that those individuals who have some job security and the few who are in the running to receive a bonus in the first quarter of 2009 are choosing to stay where they are rather than enter into what is an extremely difficult job market.

ìThe coming year will present its own challenges but, for now, one element remains consistent - the lack of visibility as to the future health of the financial services industry makes it impossible to forecast with any certainty how things will pan out. Again, it is a case of taking it week-by-week and month-by-month until confidence levels are restored.î

Average City salary
The average City salary registered 49,420 during December 08, a decrease of 1% on the same month the previous year (December 07). Despite this, there was an increase of 6% compared with November 08. This slight increase can be attributed to slightly inflated salaries being offered to some high calibre individuals in order to encourage them to move before the bonus round.

Robert Thesiger, CEO of Morgan McKinleyís parent company, Imprint comments: ìFor the entirety of 2008, there have been more new candidates than new jobs coming onto the market each month and, inevitably, this has had a deflationary effect on the average City salary. However, there are still some cases where individuals are securing above average salaries. More generally, there is significantly less pressure on employers to pay inflated salaries and therefore, the majority are moving roles for a relatively similar amount to their current salary.î