New job vacancies in the City slumped by a further 18 per cent last month compared with a year ago as redundancies and scandals at the banks took their toll, a Square Mile recruiter has reported.
Morgan McKinley said its findings underlined forecasts that London would lose an extra 13,000 financial services jobs this year.
Hakan Enver, operations director at Morgan McKinley Financial Services, said: “The 2,331 jobs in the market in January remains relatively low compared to 2010 and 2011. This lowered level of job availability underlines research from the Centre for Economics and Business Research, which forecasts that London is set to lose 13,000 financial services jobs this year.”
The CEBR, a consultancy, has estimated that the average number of City jobs is likely to fall to 237,000 in 2013 and 236,000 in 2014 – down from 354,000 in 2007. This would be its lowest level since 1993.
Mr Enver said the main hiring was for compliance officers, prompted by anti-money laundering and prevention of financial crime after high-profile cases.
“Some pockets of the market will continue to hire in the next couple of months, particularly where there is regulatory need across governance, operations, finance, and IT where large-scale projects are now under way,” he said.
“However, there is less visibility over how economic issues and the impact of Libor penalties for financial institutions may play out. It’s very possible we may continue to see a fluctuating hiring market throughout the first half of this year.”