Summer London Employment Monitor: Roaring Twenties are Back as London’s Financial Services Sector Springs into Life
The latest figures from Morgan McKinley’s Quarterly London Employment Monitor reveal that recruitment in London’s Financial Services sector has returned to growth. In the City, overall job numbers and professionals looking for new roles is in good health compared to the previous quarter:
- 22% quarter-on-quarter increase in jobs available
- 211% year-on-year increase in jobs available
- 267% increase in April 2021 in jobs available compared to April 2020
- 43% quarter-on-quarter increase in job seekers
- 17% average quarter salary change
Hakan Enver, Managing Director, Morgan McKinley UK commented, “14 months ago, Rishi Sunak announced an ‘economic intervention unprecedented in the history of the British state’. As we now emerge from lockdown, we're experiencing a rebound in economic activity and across recruitment. In particular, London’s financial services vacancies surged by 211% in the second quarter when compared to a year ago. A clear sign of a V-shaped recovery from Covid’s devastating impact on the jobs market.”
Hakan continued: “With a 22% increase over the quarter for jobs creation, the highest number of jobs since the third quarter of 2019, it really has been busy in financial services. There's a sense of real momentum and gratitude for the UKs successful vaccination programme that has been critical to getting us back on track. This is set to continue in the capital with the lifting of all restrictions, increased spending, the continued vaccination rollout and people returning to the office.”
“The overall quarter salary average at 17% was similar to what we have seen in previous quarters. However, we see a completely different picture with the monthly averages. Once the traditional bonus period (end of Q1) was over, April saw little appetite from clients to stretch the purse strings to attract talent. This was echoed by a modest 13% increase in job flow compared to the previous month, which resulted in the average salary change increasing by only 12%. However, by the end of the quarter, the outlook had changed, with confidence growing, the month on month job volumes increasing by 74%, and job seekers rising by 14%, the competition for talent pushed the average salary change back up to 24%,” said Hakan.
The easing of the long third lockdown saw the UK economy bouncing back quickly and enjoy its fastest growth in more than 70 years. It is expected to expand by a further 7.25% this year according to the Bank of England. Furthermore, the Recruitment and Employment Confederation’s latest Jobs Recovery Tracker showed 1.55 million job adverts in the UK and almost 200,000 new job postings. This is more than before the onset of lockdown in March 2020. According to a survey by Centre For London, Londoners are feeling more optimistic about the city and its employment prospects than at any other point in the last year.
“There’s been pent-up demand from professionals waiting until more certain times to make a move. Lockdown has given them time to reflect and assess their careers, leading to an increase in job seekers (43%). However, questions remain around the long term impact, how employers will adapt to flexible working, and how workplace culture can be maintained as more people work flexibly. We’re seeing an environment where the candidate dictates working conditions and can be selective on where they work,” said Hakan.
Hakan commented: “There’s also great news for younger job seekers as we’re seeing more employment opportunities for graduates. Many companies are increasing their intake and can choose from a large pool of talent from this and last year’s university leavers. Interestingly, graduates want to be more than an email address and want to come into work. They want to meet other people and build a network with closer interaction with managers and regular feedback.”
Hakan concluded: “Flexible working is here to stay and firms must adapt to remote working practices and move towards measuring performance over presenteeism. Businesses are now recognising a need to train their leaders in measuring success through the output of their staff. Whilst the city can be cut-throat with unconscious pressure to be in the office and be seen, flexible working is changing this, but there’s still a feeling of missing out when not in the office. It will be interesting to see the impact when it comes to future promotions and salary changes.”
