London’s financial services sector registered an 8% drop in job opportunities down from July 10 to August 10, reflecting the impact of the summer holiday period on the City jobs market.  Compared to the same month last year however, there was a 33% increase from 4,158 to 5,544 newly available jobs.

The number of financial services professionals entering the jobs market in August 10 increased by 6% from July 10

Andrew Evans, Managing Director, Morgan McKinley Financial Services commented:

“Typically, during the July/August holiday period, recruitment activity slows down as hiring managers and jobseekers take annual leave.  August 10 has been no exception in terms of job availability with an 8% month-on-month decline in newly available roles in financial services.

“As predicted at the end of H1 2010, there have been no dramatic rises or falls in the amount of hiring financial institutions have undertaken over the last two months, echoing general market sentiment that while conditions have improved, there is still a long way to go before we reach full recovery within the financial services market. It should also be pointed out however that while there have been some minor month-on-month fluctuations in new job growth, every month since January 10 has registered significant growth in the number of newly available jobs on the same period the previous year. This is highlighted by the August 10 job figure showing a 33% increase compared to August 09.

“Traditionally, September sees a greater amount of recruitment activity than August, and this year it will be particularly interesting to see how hiring levels compare to those in the immediate aftermath of the collapse of Lehman Brothers two years ago and how far they have rebounded.  September job opportunities will also serve as a good indication of how hiring will pan out over the remaining few months of 2010.”

The average salary for those who secured a new role in August 10 was 3% higher than those who secured jobs in July 10 and was also 5% higher than the average salary for professionals in new positions in August 09.

Andrew Evans continued:

“This month sees salaries continue to follow a relatively steady pattern with remuneration at the mid and senior levels rising slightly compared to salaries for those who were placed in July 10.  Following increases at the junior end of the recruitment market earlier this year, salaries for new starters across the financial services sector look set to remain buoyant over the course of the year – another indication that the jobs market is likely to remain balanced as we move into Q4.

“It will be interesting to see the results of our annual bonus survey in October, which should give an indication of financial institutions’ approach to compensation in 2011.”