The city job market has gone from strength to strength in the first half of 2005, according to figures from financial recruiter Morgan McKinley.

Average basic salaries have increased by 10% to £50,673, compared with £46,113 in the previous year. During the first half of 2004, average salaries increased by just 8%.

Senior professional salaries have experienced the highest increase of 13%, from £65,857 in January to £74,768 in June.

Salaries for support and admin staff have risen by 7% to reach £30,424 and middle market professional salaries have increased by 6% to £46,827.

The rises were as a result of a busy job market, where employers were competing for the best employees, said Morgan McKinley chief executive Robert Thesiger.

He added: “Junior staff and middle management professionals were particularly in demand at the very start of 2005 as firms sought to increase headcount to cope with increased market activity.

“This resulted in upward pressure on salaries. Salaries for senior professionals began to surge ahead post-Easter as the close of the bonus season increased activity at the top end of the market.”