The City job market remains buoyant, with salaries surging due to a shortage of suitable candidates for senior positions, according to new research.

Banking and financial recruiter Morgan McKinley has found that average salaries for corporate finance executives, fund managers, senior analysts and bankers have risen by 16% since February.

The average City salary is now £49,800, a 3.5% rise since last year.

Robert Thesiger, chief executive of Morgan McKinley said: “A shortage of high calibre candidates means banks are more willing to pay a premium for candidates with the right skill sets, which is resulting in upward pressure on salaries.”