City jobs jump 25% in May
May prompted a surprise jump in the City jobs market shrugging off continued unrest within the Eurozone says Astbury Marsden, a leading financial services recruitment firm.
According to Astbury Marsden, there were approximately 4,320 jobs created in May 2012, a 25% rise from April 2012, when approximately 3,455 were created.
Although the number of City jobs created in May is the highest since August 2011 the number is down 35% on the same month last year (May 2011), when approximately 6,650 new City jobs were created.
Mark Cameron, Chief Operating Officer at Astbury Marsden says: “Although the Eurozone crisis is a block to a stronger and more sustained recovery in the financial services sector we have still seen a gradual return of confidence amongst City employers.”
“Sentiment has improved since the latter stages of 2011 but, to put this recent recovery in perspective, the jobs market is still far lower than this time last year.”
“Given that the recent political deadlock in Greece and the banking crisis in Spain have made a swift resolution of the Eurozone crisis less likely, this significant uptick in the number of new jobs is a pleasant surprise for City staff.”
“With employers in the Square Mile and Canary Wharf shrugging off the doom-mongering, a 25% increase month on month increase in new jobs is definitely positive news. This positive trend in banking recruitment could well continue into June. Beyond that, it would be foolhardy to predict which way the City jobs market could go because Europe’s future is so uncertain.”
Astbury Marsden explains that foreign exchange and interest rate derivatives teams are particularly busy.
Says Mark Cameron: “Volumes within these areas seem to have picked up over the year. The threat to the Euro is now seen as a risk that businesses need to consider hedging against. That has created a lot of activity.”
“May witnessed the Euro slumping to its lowest level against the dollar for almost two years. With institutional investors bearish about the Euro, currency sales teams have certainly been earning their keep. That volatility has created income for the banks and brokers.”
“Derivatives traders covering the commodities and credit markets are yet to join the party.”
Number of qualified staff at twelve month low
Astbury Marsden adds that the number of City staff looking for a new job has dropped to a twelve month low, with 1.6 qualified staff for every available job. This has dropped slightly from April, when there were over 1.8 candidates for every role.
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Says Mark Cameron: “The pressure on banks to show restraint on pay and remuneration packages has shown no signs of abating. City staff may feel that – with hefty pay rises for switching employers looking less and less likely – they are better placed to sit tight for the moment.”