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

Banking and financial recruiter Morgan McKinley reports that since February the average City salary has risen by 7.5% and is now £49,800.

Average salaries for corporate finance executives, fund managers, senior analysts and bankers have risen by 16% since February.

Robert Thesiger (pictured), CEO of Morgan McKinley, believes a shortage of high-calibre candidates means banks are more willing to pay a premium for people with the right skills.

“The market is firmly candidate-driven across most sectors within the financial services industry, particularly as hiring is focused at the senior end, where good candidates are in short supply.

As the war for talent continues, salaries and overall compensation packages are becoming increasingly competitive,” said Thesiger.

Senior professional salaries in the sector have increased over the year by 5.6% and by 16% since February. Senior salaries now average £77,081.

Middle-market professionals can now expect an average basic salary of £43,488, while administrative and support staff can expect to be offered an average salary of £28,832.

Since February, the number of new City jobs coming onto the market has increased by 22.7%. There were more than 6,800 new City jobs on the market in May.

“Growth continues across most areas within financial services,” added Thesiger, “notably in risk management, corporate finance, and commodities where there has been more high-level hiring in the past three months than we have seen over the last two to three years.”