Job vacancies and pay rise in the City as the recovery kicks in

Tim Wallace
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PAY PACKETS in financial services outstripped inflation this year, recruiters Astbury Marsden said, as the economic recovery reached salaries at long last.

And the number of City firms hiring more staff jumped sharply last month, according to data out today from headhunters Morgan McKinley.

Salaries increased by an average of six per cent, rising above inflation which came in at 2.2 per cent in the year to October.

The number of City workers getting pay rises increased to 47 per cent, up from 44 per cent two years ago, and 67 per cent expect their bonus to increase or stay the same.

“Despite pressure to keep a lid on bonuses, as the economy recovers and bank profits start to return, it’s not unreasonable that bonus expectations also rise,” said Astbury Marsden’s Mark Cameron.

Morgan McKinley found 7,056 vacancies advertised in November, up 30 per cent on the same month of 2012. Its employment monitor recorded 8,623 active jobseekers, more than double the 3,886 in November 2012 as the economy picks up and workers become more optimistic of finding placements after several years in the doldrums.

“The year-on-year job growth can be attributed to increased business optimism within the financial services sector as the UK economy continues its recovery,” said Morgan McKinley’s Hakan Enver. “The feeling is that recruiting levels will be far over and beyond just replacement hiring, which has been much of the norm this year.”