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09 July 2010
Worries over the double-dip have led to an -18% drop in City job vacancies reveals research by Astbury Marsden, the financial services recruitment firm.
According to the research, the number of new City job vacancies created in June was 5,100 down from May's 6,238.
Mark Cameron, Chief Operating Officer at Astbury Marsden said "worries over the European banking sector have taken the froth off the jobs market. There is still an awful lot of hiring going on, it is just that the pace has changed down one gear, which will keep wages from overheating. That is good news for the industry as it is a lot more sustainable."
"Nearly all the banks are now being pretty prudent. They are only hiring on their immediate pipeline of work rather than the work they hope to get."
Astbury Marsden points out that new City job vacancies created this June are still 26% more than the 4,057 in June last year.
Mark Cameron explains that much of the demand at the moment is being created by an increase in churn of staff. For example, Astbury Marsden has recently been instructed by an institution which has hired 74 staff over the last quarter and seen 70 leave within the same period.
Explains Mark Cameron, "Turnover of staff has always been higher in the City and Docklands than in the rest of the UK. Whilst City staff sat tight during the recession that period is seen as over."
"Investment banks are telling us that although the pipeline of M&A deals looks healthy the delay in converting those deals into success fees has caused departments to moderate their requirements for new M&A bankers and more junior analysts."
Astbury Marsden says that one area of increased demand amongst banks is in prime brokerage roles (includes lending to hedge funds and the provision of back office and other services).