Hiring activity remains constant in Londonís financial services industry

Highlights
Hiring activity remained flat in September 07 compared to the previous month as the City assessed the full impact of the summer credit crunch

City job numbers fell 2% versus August 07 levels but were still strong on the same month the previous year, rising 12%
Candidate movement dropped 12% in September 07 compared to August 07 as finance workers were less willing to move due to the upcoming bonus season as well as concern over recent stock market volatility

Average City salary stood at 51,388 in September 07, a decrease of 0.6% on August 07.

Hiring activity remains flat
September saw no dramatic slowdown in middle and back office financial services recruitment levels within London despite speculation surrounding recent stock market volatility. New job numbers remained relatively steady on August 07, registering a dip of 2% as some banks assessed what the full impact of the credit crunch would be and took stock of their hiring needs for the remainder of the year. However, September job numbers were still up 12% compared to the same month the previous year.

With uncertainty as to how far the global credit crunch would spread as well as the fact that many individuals are staying put in the lead up to bonus season, the number of people looking for a new job in September 07 was down 12% on August 07 levels.

Robert Thesiger, CEO of Morgan McKinleyís parent company, Imprint Plc comments: ìRecent turmoil in the financial markets has meant that hiring activity from the summer months into September has remained relatively flat as banks assess the full impact of the credit crunch and review their hiring needs for Q4. However, job figures continue to show a healthy uplift on the same period the previous year and job cut announcements appear to have been largely contained within areas directly related to the credit crunch.

ìNaturally, market volatility will have a dampening effect on peopleís confidence to move jobs and finance workers are adopting a wait and see approach. As bonus season is fast approaching, it is likely that candidate movement will remain relatively flat now for the remainder of the year.î

Top performers still likely to receive large bonus payouts
Average City salaries remained steady in September 07 at 51,388, a decrease of 0.6% on August 07. With a number of financial institutions reporting poor performance in Q3 and continued speculation surrounding the current state of Londonís financial services industry, the bonus pot is predicted to be reduced by 16%1 (Source: CEBR) this year, down to 7.4bn compared to last yearís record payout of 8.8bn.

Robert Thesiger, CEO of Morgan McKinleyís parent company, Imprint Plc comments: ìWhilst basic salaries are likely to remain steady for the remainder of the year, for financial institutions affected by the credit crunch, cutting bonuses will be an easy way to immediately contain costs. Following on from a record year for bonuses in 2006, the predicted smaller bonus pot for 2007 will still mean that top performers will be well rewarded as banks continue to focus on retaining the best talent. However, the current situation will also be used as an opportunity to manage down expectations.î