London gets back to business as usual as the number of new jobs rises, but firms still face a skills shortage

 
Courtney Goldsmith
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The City is back to business as usual (Source: Getty)

Confidence is returning to London's jobs market as the number of roles in the City grew in the first quarter of 2017, new research from a specialist recruitment consultancy has found.

The number of jobs in the capital increased by 11 per cent compared with the same period in 2016, according to figures from Robert Walters seen by City A.M.

“Amid political and economic uncertainty, both in the UK and overseas, the City faced a challenging period in 2016, with many banks and financial services firms hesitant to commit to increasing headcount," said Chris Hickey, chief executive of Robert Walters UK, Middle East and Africa.

“However, the figures from the first quarter of 2017 are encouraging, indicating that many firms are returning to a ‘business as usual’ approach, looking to take advantage of rising levels of investment.”

Read more: This headhunter says City firms have started hiring again

Despite the number of jobseekers increasing over the period, employers are still facing a skills shortage with 1.6 roles for each candidate.

Hickey said there is a lag between professionals having the confidence to look for new opportunities and employers looking to hire.

“The outcome for employers is that they are having to compete for top talent, particularly in fields such as risk and compliance where demand for highly skilled and experienced specialists continues to outstrip supply.”

A study published today by the Recruitment and Employment Confederation (REC) found employers are increasingly upping pay offers to secure the best talent in the face of a tightening labour market.

A lack of suitable candidates led almost half of the firms REC surveyed to say they expected skills shortages when hiring permanent candidates over the next three months.

Read more: Business must step up to solve the skills crisis

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