City jobs market stabilises after October jitters

- Financial services job seeker numbers stabilise in January following October credit-fuelled panic

- City salaries 10.8% yoy and job vacancies up as fears prove unfounded

The number of candidates looking for jobs in the UK financial services sector settled back down to around the 30,000 mark in January 2008 - down 20.3% from October 2007. Candidate numbers in the market had spiked upwards in October, to 37,825, as global credit turmoil led to concerns over bonuses and future job vacancies.

Tara Ricks, Managing Director of Joslin Rowe Associates explains: ìBack in October, candidates had two things on their mind. The first was bonuses and the impact credit issues would have on the pot. The second was fears over the jobs market in the New Year. We saw a wave of candidates coming onto the market in October - spooked that certain jobs might not even exist come January. As the panic has subsided and candidates have realised that salary levels and job vacancies are buoyant, candidate numbers have stabilised. Applicants looking to change jobs now stand at very similar levels to a year ago.î

PERMANENT JOBS TO BE FILLED
The fears over job vacancies expressed by some candidates in October 2007 have proved unfounded. There were 8.5% more permanent job vacancies to be filled by employers in January 2008 than the previous month ñ up from 17,630 to 19,130. Temporary job vacancies also increased, from 12,330 to 14,480, over the same period ñ a 17.4% rise.

PAY
Pay levels in the financial services industry have also defied gloomy predictions. Average salaries in London have risen 10.8% to 38,759 in the last year. Hourly rates for temporary workers in the City have increased from 15.22 to 16.49 in the last year. This represents an 8.4% increase, and rates continue to stay ahead of inflation - with Retail Price Inflation (RPI) falling to 4.0% in December.

Tara Ricks said: ìWith the gloom surrounding leaner bonuses and bonus expectations in autumn 2007, these strong salary levels are a clear sign that employers are seeking to retain and reward talent rather than embarking on full-scale cutbacks. We expect there to be more jobs than applicants for the foreseeable future and salary levels to remain stable in turn. There might be a slowing in the housing market, but clearly the City is not planning on a recession.î

TIME TO FILL
Permanent vacancies in the financial services sector took 15 fewer days to fill in January 2008 than January 2007. The average time to fill a permanent position stood at 87 days a year ago, compared with 72 days in January 2008. There was no change in the time taken to fill a temporary position over the same period.