Morgan McKinley London Employment Monitor - February 08

Highlights
Hiring activity within Londonís financial services market continued at a similar pace in Feb 08 compared to the previous month, with new job vacancy volumes remaining steady, up 2.3%

However, Feb 07 versus Feb 08 figures registered a fall of 9.6% in new job vacancies as uncertainty within the financial services market continues

The number of individuals looking for new roles fell 7.3% compared with Jan 08, when a surge of candidates tested the temperature of the jobs market pre-bonus payouts

Candidate flow on the year remained relatively stable, up 3.3%

The average salary fell 5.9% on the previous month and 1.9% compared with February 07 to 50,119.

Hiring market holds firm
An increase in middle and back office new job vacancies in February indicates that healthy levels of hiring are still occurring within Londonís financial services market, albeit at a slower pace than this time last year, as institutions continue to take a more cautious approach. New job numbers stayed relatively static on January 08 levels ( 2.3%) but registered a drop of 9.6% compared with the same month the previous year (February 07).

The number of individuals looking for new job opportunities in the City fell by 7.3% compared to January 08 figures. Whilst candidate movement on the previous year (February 07) showed a slight rise ( 3.3%) and new candidate numbers overtook new job numbers for the third consecutive month, the war for talent continues. Skilled middle and back office financial services professionals are still in short supply in London as well as globally.

Robert Thesiger, CEO of Morgan McKinleyís parent company, Imprint Plc comments:
ìNo one would disagree that the climate within Londonís financial services industry is tougher than it has been for several years. However, in the main, the hiring market is holding firm with replacement as well as some expansion recruitment continuing to take place. As Iíve said previously, it is likely many banks will remain cautious until the end of Q1, by which time there should be further clarity globally as to how the financial services industry is likely to shape up for the rest of the year.î

ìAs bonus expectations were generally well managed this year, financial services professionals (like their employers) are taking a more circumspect approach to the job market. The flow of candidates lost some pace in February and this is keeping up the pressure on a skills short sector.î

Salaries to level out
The average basic salary for support and mid-market financial services professionals in February 08 saw a rise of 8.3% and 4.7% respectively compared to January 08 figures. However at the senior level, a drop of 16.6% was recorded, a readjustment following the hikes of the last two months. This resulted in the average City salary falling 5.9% to 50,119 in February 08 compared to January 08.

Robert Thesiger, CEO of Morgan McKinleyís parent company, Imprint Plc comments:
îThere have been some interesting rises in basic salaries over the last couple of months as employers have continued to encourage key talent to move roles. However, if current market conditions persist, it is likely that basic salaries within the middle and back office will start to level out.î