City salaries rise almost 4% in 2004

Since December 2003 the average City basic salary has increased by 3.69% from 43,445 to 45,046.
Support/admin and middle market professionals have benefited most from the increase in recruitment, seeing respective salary increases of 13.8% and 6.9% over the year.

Morgan McKinley estimates there are currently circa 8883 outstanding job vacancies in the City, which is down by 11% over the month.

Indicators suggest a positive outlook for the City jobs market in 2005.

Ken Brotherston, Chairman Morgan McKinley comments:
ìGrowth in projected business volumes led to a strong increase in demand for staff across all levels, particularly in the early half of 2004. This placed upward pressure on salaries, which rose by an average of 3.7% over the year. Whilst salaries for support/admin and middle market staff rose steadily, expectations of improved bonus payouts compared to the relatively low level of payments in recent years, remained the key driver at the senior end.î

Outlook for 2005
Despite concerns about the effect that poor retail sales, higher interest rates and a slowing housing market may have on the growth of the UK economy, prospects for the City job market in

2005 remain optimistic, particularly for certain specialist sectors. Projected upturn in M&A activity in 2005 should lead to continued recruitment within the Corporate Finance segment and continued growth in financial regulation and reporting requirements will fuel demand for accountants across the City.

The outlook for Banking Operations appears positive across the board and at all levels to support steady growth in trading activity. Derivative specialists across equity, credit and rate areas are in particularly high demand as there continues to be a shortage of high calibre candidates in these sectors.

Ken Brotherston comments:
ì2005 is shaping up to be a good solid year for the financial services market in London and therefore for recruitment activity. Where areas of high demand are met with a paucity of candidates, there will naturally be an upward movement in salary levels in 2005. However, overall salary pressure is reasonably under control as bonuses continue to hold significant weight in the make up of total compensation packages.î