LONDON’S FINANCIAL SERVICES HIRING MARKET FACES UNPRECEDENTED CONDITIONS

During September 08, the ongoing crisis within the global financial markets continued to slow recruitment activity within the City of London as new job vacancies fell 14% compared with August 08. This was the third consecutive month of decline in the volume of new job opportunities coming onto the market.

Figures comparing September 08 to that of the same month the previous year (September 07), saw new job opportunities drop 42%, further highlighting the impact that the turmoil in the financial markets is having on hiring.

The monumental changes to the landscape of the financial services industry which occurred during September, as well as more recently, prompted an influx of available candidates onto the market. This was reflected by a 42% rise in the number of individuals looking for new roles during September 08 compared with the previous month (August 08). However, despite this significant month on month increase, there were just 2% more available candidates than in September 07. 

Robert Thesiger, CEO of Morgan McKinley’s parent company, Imprint, commented: “Given the events of the past six weeks, the September 08 new job and candidate data will come as no surprise. There is no doubt that these are unprecedented times for the financial services industry and in turn, the recruitment market within the sector. Recent events have affirmed that changes within the hiring market can be rapid and on a large-scale. The influx of candidates coming onto the market last month, largely as a result of the collapse of several City institutions as well as general instability within the industry, is evidence of this.

“The global financial services landscape is changing on a daily basis and until a semblance of calm is triggered by an increase in confidence, making predictions on what future hiring patterns in the City will look like is virtually impossible.  However, it is worth noting that there isn’t a blanket freeze on recruitment in the City and there are still a number of areas within the sector which are recruiting.”

During the third quarter of 2008, tougher conditions within London’s financial services hiring market and the increased availability of talent meant that, on average, individuals received a lower increase in basic salary when moving roles than their counterparts did a year ago. Between July 08 to September 08, individuals received an average salary increase of 18% when moving roles compared with 26.6% during the third quarter of 2007.

The average City salary registered £49,893 in September 08, falling 1% compared with August 08 and 3% versus the same month the previous year (September 07). 

Thesiger concluded: “Currently, the availability of financial services professionals far outweighs demand for the majority of areas within the industry’s hiring market. Inevitably, this is going to have an effect on the salaries being offered to individuals. Employers have a far greater choice of available candidates and so there is not the same amount of pressure to pay above average basic salaries as there was a year or two ago.”

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