Job openings are down dramatically, and the number of people looking for jobs in the City of London are at a five-year-high, according to the latest employment figures from Morgan McKinley.
The recruitment specialist estimated there is a 28% increase in the number of people actively looking for new job opportunities in finance, compared to the same period in 2021.
This was at the same time that hiring slowed across the quarter, with a 30% decrease in jobs available compared to the previous quarter due to the unsettled economic situation and summer holiday season.
The result is that there was almost 3.5 people chasing each financial services job in the third quarter, compared to fewer than 2 in the first three months of the year.
Although this is a better picture during 2020 when Covid hit, it is still far above the long term average. Q1. This was a more favourable ratio than during the bad days of 2020, but is still far above the long term average.
“It’s been over a year since the economy fully reopened,” said Hakan Enver, managing director, Morgan McKinley UK. We saw a sustained period of recruitment activity for most of that time, but now it seems hiring in the City’s Financial Services sector has slowed down a little.”
He added, “The rush of jobs are not yet available for those looking for jobs in financial services, which is now at its highest level since 2017. The cost of living crisis is causing workers to feel the pinch and seek out new roles with higher pay, better work-life balance, increased job satisfaction and expanded benefits.2
The report found that the average salary change for a finance professional moving from one job to another during Q3 2022 was 20%.
“Whilst we witnessed a higher supply of candidates coming to market, this didn’t impact the average salary change too drastically,” said Enver.
He added, “Despite a 5% fall compared to the previous quarter, the average salary increase for a finance professional held at 22% year to date. There is clearly a continued desire to hire the best talent and offer competition packages to secure those individuals.”
The other trend highlighted in the research was a return to the office on a more regular basis.
“Employers encouraging people to be in the office more frequently has led to busier City-bound trains and queues in favourite coffee spots as commuter numbers have nearly doubled in comparison to last year,” said Enver.
