- The Morgan McKinley London Employment Monitor registered a 2% decrease in available financial services job vacancies month-on-month in July 12
- Compared to the same time last year, this was a drop of 48% in vacancies coming onto the market
- The number of professional job seekers interested in new roles fell by 24% from June 12 to July 12
- This was a drop of 46% when compared to those entering the jobs market in July 11
- The average salary for those securing new positions in July 12 lowered by 13% month-on-month and was 7% down on July 11.
Financial services job opportunities steady over summer months
Morgan McKinley’s London Employment Monitor registered a 2% drop in the number of jobs available in the financial services hiring market from 2,630 in June 12 down to 2,583 July 12. This number compared to the 4,977 job vacancies in July 11 is a decrease of 48%.
The number of professionals noting their interest in new City jobs fell away by 24% month-on-month in July 12 from 6,251 down to 4,750. There were nearly twice as many job seeking professionals at the same time last year, with a 46% decrease from 8,770 in July 11 to 4,750 in July 12.
Andrew Evans, Chief Operations Officer, Morgan McKinley Financial Services commented:
“During the summer months we typically see the entire recruitment market slow down with fewer jobs being released and job seeker numbers declining. With the UK remaining in recession throughout Q2, we wouldn’t expect this pattern to change, however a 2% drop could be viewed as a stabilisation in the market all things considered. Last year, we saw financial services job opportunities fall month-on-month at this time by 10%.
“Looking ahead to the rest of Q3 we are taking a cautious approach to forecasting. Despite the job vacancies remaining fairly stable month-on-month, compared to last year the number of opportunities is still significantly lower (46%). As with most senior hiring managers and other experts in the recruitment market, our view on hiring in London is clouded by the continuing complexity and shifting nature of the global economy. Insight from other key financial services markets in which we operate: Hong Kong, Singapore, Tokyo and Shanghai indicates that lower numbers of job availability is the same on a global level.
Employers, particularly within European banks located in Asia Pacific markets are feeling the effects of financial turmoil in Europe which in turn is having an impact on their hiring – exactly as we have seen in London over the course of this year.
“The one trend within the market that has remained constant so far in 2012 is the type of functions – change management, compliance, risk and regulatory – where financial institutions are still looking to invest in strong talent. In particular we have seen demand for operational risk and quantitative finance specialists. Professionals with anti-money laundering and financial crime experience are also particularly sought after along with sales & trading compliance advisors. We anticipate continued demand across these areas over the coming months.”
Average compensation lowers in July 12
For those receiving job offers in July 12, compensation on average fell 13% across the City compared to the previous month to reach £46,800. This was 7% lower than the same month last year.
Andrew Evans continues:
“Whilst you might expect there to be a correlation between job opportunities and the reduction in salaries, in reality, this is not the case. However as the operating environment remains challenged, thereis understandably pressure on employers to ensure that salaries for new joiners are aligned with agreed hiring budgets.
“Job seekers also need to be mindful of market conditions when looking for a new role. Pay is no longer the stand-out motivator for City workers to move roles. Those with in-demand skills will be in the most favourable position to negotiate more attractive salaries. Other professionals will need to take a broader view of overall compensation and benefits packages on offer, as well as the opportunities that a new position can provide in terms of working on key projects, learning new skills and longer-term career development.”