The number of jobs on offer within London's financial services industry has been increasing at a significant rate over the last year and Morgan McKinley's February 2006 figures are a typical illustration of the extent of this growth.
- February 2006 witnessed strong growth in City hiring with a 47% rise in new job vacancies compared to February 2005 levels
- New candidate numbers were down 6% to 8090, after a surge in new candidate activity the previous month
- The average City salary was up 7% to £49,805 over the year
- Highest rises in salary levels occurred at the senior end of the market with a 15% increase on February 2005 levels to £76,750
Demand for financial services workers nearly doubled in February 2006, up 47% compared to February 2005 levels, registering 16,569 new City job vacancies coming on to the market over the month.
The surge in profits within the banking sector has been attributed as one of the major factors in the continued rise in employment opportunities within the Square Mile. Several investment banks have recently reported strong profits and this has given them confidence to further expand their areas of operation and in turn increase headcount.
Robert Thesiger, Chief Executive of Morgan McKinley comments: "Employment figures in the City are always directly affected by the profits of the largest companies and it comes as no surprise that the surge in profits within the banking sector has driven new job numbers up to their highest point since Morgan McKinley’s London Employment Monitor began in October 2004."
While hiring volumes continue to rise, the "war for talent" shows no sign of abating in this highly candidate driven marketplace. New candidates coming on to the market in February 2006 dropped 6% on the previous month and 17% on the same period in 2005.
This discrepancy between supply and demand continues to push up basic salary levels, particularly at the senior end of the market. The average salary recorded for senior professionals and directors was up 6% on January levels to £76,750 and 15% over the year.
Overall, the average City salary rose by 3% to £49,805 during February 2006. This is more than a 7% increase on the same month the previous year.
Robert Thesiger, Chief Executive of Morgan McKinley comments: "We would expect candidate numbers to increase over the next few months as financial services workers pocket their bonuses and start looking at the wealth of opportunities that are currently out there within the financial services sector. However, job volumes look set to remain buoyant over the remainder of the year and so the need to attract and retain skilled professionals to fill these vacancies will continue.
Upward movement in basic pay rates is inevitable in this kind of climate but is likely to smooth out as we move further into the year. Pay will always be a factor but organisations will be looking at other ways to secure the talent they need, whether through the make-up of total compensation packages or the career development opportunities they offer."