Morgan McKinley May London Employment Monitor

Highlights

New job vacancies within Londonís investment banking and financial services industry continued to rise in May 2006, up 19.4% compared to May 2005 and 9.3% on the previous month (April 2006)

The number of new candidates looking for a career move was down 16.4% on May 2005 levels but held firm on April 2006 figures, registering a drop of only 1.45%

Average basic salaries continued to push above the 50,000 mark for the third consecutive month

Job growth
May 2006 saw a rise in hiring within the City of Londonís financial services institutions compared to both the previous month and the previous year. The current recruitment drive in the City is being fuelled by a continuation of strong organic growth as well as replacement hiring.

Since May 2005, the number of new financial services jobs coming on to the market has risen by 19.4% with the total number of City vacancies up 19.9% compared to the previous year.

Robert Thesiger, Chief Executive of Morgan McKinley comments:

ìAs expected, May saw a high level of recruitment activity within the financial services industry in London. New job vacancies were up nearly ten per cent (9.32% when compared to April) and almost twenty per cent (19.4%) compared to the same time last year. The figures show very clearly that hiring mandates within financial institutions are extremely strong at present and alongside replacement hiring, business expansion remains firmly on the agenda.

ìHowever, as new job numbers once again overtook the number of new candidates looking for a career move last month, the shortage of high calibre candidates to fill these vacancies, continues to be the key issue that financial services organisations will need to combat over the remainder of 2006 in order to achieve projected growth levels.î

In demand
Demand continues to be high at all levels across the banking and investment management sectors, particularly for senior qualified accountants, compliance specialists and operations professionals. This is helping to keep the average City salary above 50,000 (51,022) per annum for the third month running.

Robert Thesiger, Chief Executive of Morgan McKinley comments:

ìTalented financial services workers have had the upper-hand in terms of pay negotiations for several months now and naturally this is being reflected in the rise in the average City salary. There is nothing new in the willingness of employers to pay a premium for the right individual in such a strongly candidate driven market.

ìHowever, there are some curbs that are being placed on the growth in permanent salaries as organisations look elsewhere to find the talent they need, whether this be within the global marketplace or indeed, closer to home within the temporary market. From Morgan McKinleyís own records, the growth in the number of temporary roles coming on to the market has been extremely high in recent months, as banks turn towards experienced temporary workers to meet their hiring needs.î