Morgan McKinley’s London Employment Monitor: City job seekers optimistic as salaries rise
The latest employment figures from Morgan McKinley suggest a trio of positive news for workers from the City’s financial services sector. According to the company’s recruitment monitor for Q2 2022, there were over 46% more jobs available and 65% more people actively looking for new job opportunities compared to the same period in 2021. Salaries were also on the rise. The average salary change for the second quarter of 2022 peaked at an all time five-year high of 25%. This meant that on average, a financial services professional was able to seek a 25% uplift on their basic salary by switching jobs.
However, there was a slowdown in hiring in May compared to April by 29%, due to public holidays, half term and annual leave taken to tie in with the extra bank holidays for the Queen’s Jubilee celebrations.
Hakan Enver, managing director, Morgan McKinley UK commented: “Professionals looking for new jobs are at their highest since 2017. Confidence amongst job seekers has rebounded, wiping out the effects of the last five years of turmoil with Brexit and the pandemic. Job seekers are aggressively looking for their next professional opportunity.”
“It’s no surprise that more people are displaying a desire to change their careers as they’ve had time to reflect on what they do and what they want from their employers. Burnout, workload, lack of progression, poor culture and lack of flexibility have caused employees to rethink their careers. The ‘Great Resignation’ has caused upheaval for employers, however, employee turnover is to be expected and can be healthy.”
“Organisations need fresh talent, new ideas, creativity and change to thrive and grow. In some cases, businesses have faced multiple resignations and failed to hire replacements. But with no reduction in workload, existing employees are the ones who will likely have to take on additional responsibilities – this is something employers should be mindful of as they risk overworking current team members and ultimately causing them to look for a new job. The market has responded by offering higher salaries as businesses seek to invest in long-term talent to drive business growth.”
“In the current jobs market, workers have the upper hand. With vacancies in London’s financial services 46% higher compared to last year, professionals can demand higher pay and more perks as they search for a better work environment post-pandemic. With job seekers facing external financial pressures through higher costs, such as petrol prices, utility bills and holidays, the desire to move jobs is heightened by the desire to increase their salary to compensate. Competition between companies to secure top talent has propelled pay growth and many are moving fast to recruit top and fresh talent to help them deliver their services and avoid a bidding war. Now is a better time than ever to consider a new role.”
Hakan concluded: “Despite the positivity, fears are growing about the prospects for the UK economy – a summer of discontent followed by a winter of consumer strife and inflation at its highest level. A tunnel of bad news stretches before us, with the growth of employment and job vacancies starting to level off this quarter. It’s likely that recruitment will start to slow down. With inflation headed towards double-digits for the first time since the early 1980s, the economic outlook is darkening and confidence flatlining amongst the City.”