Morgan McKinley London Employment Monitor - April 2009

Highlights

During April 09, the volume of new job vacancies within Londonís financial services industry fell 20% compared with the previous month (March 09) and 69% compared to April 08 levels

Individuals who secured a role during April 09 took an average of 61 days to do so; four days longer than it took their counterparts a year ago (April 08)

The number of financial services professionals who began their search for a new position in April 09 fell 4% versus March 09 and 40% compared to a year ago (April 08)

The average City salary registered 52,106, a 7% increase on the same month the previous year (April 08).

New financial services job numbers fall in April 09 but employers show greater commitment to hire

Recruitment within Londonís financial services industry slowed during the month of April 09 with the number of new job vacancies falling by 20% compared with the previous month (March 09). The decrease ended three consecutive months of growth, which was consistent with expectations given the Easter break. The bank holiday disrupted the flow of new jobs onto the market as well as general hiring activity during the month. Compared with the same month the previous year (April 08), new job opportunities were down 69%.

The average time taken for financial services professionals to secure a new role in April 09 was 61 days. While this was one more day compared to March 09, it registered a significant drop compared to January 09 and February 09, when it took an average of 81 days and 72 days respectively to secure new jobs. These figures suggest that over the last two months, there has been a stronger commitment to hire and as a consequence the recruitment process has speeded up. Nevertheless, the April 09 figure was still four days more than the same month the previous year (April 08).

The number of new candidates entering the jobs market during April 09 remained relatively steady, registering a fall of 4% versus March 09. However, there were still 40% fewer new candidates than a year ago (April 08).

Andrew Evans, Managing Director of global professional recruiter, Morgan McKinley comments:

ìWhile the decrease in new City job vacancies was to be expected in April 09 as the month included the Easter break, it did put an end to the small uplifts in hiring seen during the previous three months of the year. It is clear from these figures that recruitment activity continues to be at reduced levels compared with a year ago and the sizeable gap between the number of new candidates and vacancies highlights that the financial services jobs market in London is still extremely competitive.

ìHaving said that, over the last couple of months, there does seem to have been a slight shift in attitude amongst City employers. While the highly considered and cautious approach that institutions have been taking towards recruitment is still very much prevalent with businesses continuing to only hire individuals who exactly match their stringent hiring criteria and remuneration expectations, there does seem to be a stronger commitment to secure talent. More of the roles that are coming onto the market are being filled rather than put on hold. This shift in attitude has reduced the time it is currently taking for candidates to secure their new role.î

Average City salary

The average City salary registered 52,106 during April 09, a 7% increase versus the same month the previous year (April 08). This was primarily driven by an increase in basic salaries at the senior end of the market where employers often still have to pay above average salaries to attract key talent for strategic operational roles.

Andrew Evans, Managing Director of global professional recruiter, Morgan McKinley comments:

ìDespite reduced recruitment levels, there are still some cases where employers are paying above average basic salaries. This is particularly prevalent at the senior end of the market where employers are securing high calibre individuals for strategic roles such as managing and overseeing the upgrading of systems and the improvement of processes.

ìRecently, there has been a lot of talk in the media about financial institutions increasing basic salaries to offset changes to the structure of bonus packages. This has been evident in certain cases, predominantly at the senior end of the market but for the majority, they are still in very early discussions on the prospect and assessing the implications of such a proposal.