World Cup induces early summer amongst finance workers seeking employment in Londonís job market

Highlights
The number of new jobs remained steady on the month (up 2.3%) but registered strong growth of 34% compared to the same time last year

- Average City salaries remained above 50,000 for the fourth consecutive month

- Support salaries rose 7% compared to May 2006

- The onset of the summer and World Cup fever may have affected the flow of finance candidates seeking new employment in June with a drop of 15.33% recorded on May figures, contributing to an increasingly tight candidate market

Job growth
June 2006 has seen yet another increase in the number of financial services jobs coming on to the market with 34% more vacancies compared to June 2005 levels. This takes the number of new City vacancies to 8,316. These figures reflect the continued strength of Londonís financial services recruitment market.

Robert Thesiger, Chief Executive of Morgan McKinley, comments:

ìLondonís reputation as one of the worldís leading financial centres continues to grow and with it so do the job opportunities. Investment banks and smaller finance houses are still in expansion mode, whether this be within existing departments or through the development of new product areas. Inevitably, hiring volumes will continue to rise as a result.î

Chart 1: Number of new jobs vs. new candidates



World Cup contributes to dip in candidate numbers
Traditionally, July and August constitute the period when the permanent recruitment market slows slightly as hiring decision makers take annual leave and those looking for a new job opportunity tend to hold off until the autumn. However, with the World Cup falling in June, the seasonality effect came into play a month early and combined with an already highly candidate driven recruitment market, these factors contributed to a drop in new candidate numbers of 15.3% compared to May.

Robert Thesiger, Chief Executive of Morgan McKinley, comments:

ìThe annual seasonal cycle of the summer months in relation to the fluidity of the candidate market was further highlighted by the excitement of the World Cup finals. However over the month, we continued to experience unwavering demand from employers to hire high calibre financial services professionals as the job growth figures illustrate.

ìAs we move into the more traditional summer period of July and August, it is likely that candidate availability will remain tight. We anticipate job volumes on the other hand to remain strong.î

Chart 2: City salaries



Support salaries rise
Demand for experienced finance staff at all levels continued to rise in June with the average City salary remaining above 50,000. Support and administration salaries recorded the largest increase, rising 7% when compared to May. The average investment banking back office support role now commands just under 30,000 (29,121) a year.

Robert Thesiger, Chief Executive of Morgan McKinley, comments:

ìThe average City salary in June stood at 50,214, not the first time itís broken the 50,000 mark in the last 18 months but it is the first time it has stayed there for four consecutive months. Experienced finance staff are still in great demand as weíre in a tight candidate market, although employers should not be dismayed as top talent is out there and willing to move roles for the right opportunity.î