Pressure on financial services talent pool continues

Highlights
The flurry of post bonus candidate movement continued in Feb 07 as candidate availability kept pace with the increases seen in Jan 07, registering a movement of minus 0.8%

Compared to the previous year, candidate flow continued to see healthy increases, with a 22% rise on Feb 06 levels

New job numbers were up 15% compared to the same time the previous year but saw a drop of 10% on Jan 07

However, the new job figure for the month (9,198) was 22% higher than the average new vacancy number for the whole of 2006, highlighting the continued robustness of the City jobs market

Basic salaries for mid to senior level professionals saw slight increases in Feb 07, which pushed the average City salary up to 51,087, an increase of 2.6% on the year and 0.7% on the previous month.

Job numbers up 22% on 2006 levels
Despite February being a short month, the number of individuals looking for new job opportunities in Londonís financial services industry kept pace with January 2007 levels. With significant numbers of new finance jobs continuing to come on to the market each month and skilled finance workers still very much in demand, many are being tempted to take advantage of the increase in job opportunities in order to fast track their careers. The number of new jobs coming on to the market in February was 22% higher than the average new vacancy number for the whole of last year.

Robert Thesiger, Chief Executive of Morgan McKinley, comments:

ìDespite increases in candidate availability during the first couple of months of the year, pressure on the talent pool within the financial services industry in both London and further afield is likely to continue. New job numbers in February are still higher than the average run rate for the whole of last year and indicators point towards this pattern of growth continuing for the remainder of 2007.

ìIt is not just the permanent hiring market that remains strong within the investment banking and financial services industry in London, both sides of the recruitment coin are extremely busy at present. With pressure on supply, institutions are looking to fill the void with the best talent available, whether that is on a permanent, interim or temporary basis.î

Salaries remain static for the majority
For the majority of financial services workers, basic salaries remain relatively steady with the average salary for February standing at 51,087, up 0.7% on January 2007 levels and 2.6% compared to February the previous year. Senior level salaries saw the strongest growth, rising 4.2% compared to February 2006 to 79,955.

Robert Thesiger, Chief Executive of Morgan McKinley, comments:
ìWith the continuing high levels of demand and talent remaining in short supply, we are still seeing a degree of wage inflation. However, organisations are looking at total compensation packages rather than just basic salaries alongside career opportunities to entice the star talent.î

Robert Thesiger, Chief Executive, Morgan McKinley is available for comment and interview.