The number of jobs vacancies at London’s financial services businesses fell to its lowest point of the year in September, a recruitment consulting company has found.
A weakening outlook for the industry around the world and the UK’s own faltering economy have been blamed for the lack of jobs available in financial services. Job vacancies in the City of London dropped from 4,725 in September last year to 3,843 last month, a fall of 19 per cent, according to Morgan McKinley.
Britain’s economy has barely grown at all over the last year. The International Monetary Fund last month cuts its growth forecast for the UK’s economy in 2011 to 1.1 per cent from 1.5 per cent, while it has slashed its forecast from next year to 1.6 per cent after originally projected growth of 2.3 per cent.
Meanwhile, European lenders are under pressure to solve the debt crisis in the regions which threatens to push the world economy back into recession.
Morgan McKinley chief operations officer Andrew Evans said: “Typically, September is the month when there is a resurgence in recruitment activity after hiring managers and job seekers return from summer holidays. However, the fall in job opportunities this month illustrates that the hiring market across the City is now impacted predominantly by continuing economic and financial issues both in the UK and globally.
“It is unsurprising to see that the number of job opportunities has declined further in September 2011 compared to both August 2011 and the same month last year. Anecdotal evidence from the financial institutions that we work with as well as the drop in number of professionals entering the hiring market underlines that the sentiment across London’s financial services sector remains extremely cautious. Our colleagues across Europe, the Middle East and Asia Pacific have also identified similar challenges which are affecting financial services hiring around the world.”
The recruitment consulting firm found the number of professionals seeking new jobs dropped by 21 per cent in September compared to last year, while average salaries in the City for new positions increased by six per cent to £55,607 from the previous month.
Evans continued: “Looking ahead, anticipating when business performance will improve remains difficult. However, regulatory developments and further quantitative easing may have a positive impact on the hiring market. From a global perspective, finding a solution to the debt crisis in Greece and other Euro zone countries will go some way to providing a clearer picture of the immediate future for industries and economies across Europe and beyond.”
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