The number of new City jobs rose by 142% in January on December, according to the latest Morgan McKinley London Employment Monitor.

The Monitor reveals that compared to January 2010, job numbers rose by 28% this January. The number of new candidates also rose by 76% month-on-month in January 2011.

Compared to the corresponding period last year, January 2011 saw a 64% rise of professionals new to the jobs market.

Meanwhile, of the 200 HR and line managers working across financial services in London who were surveyed, 62% expect basic salary offers to rise this year, with 55% expecting the rise to be no more than 10%.

Almost a third (31%) predict temporary/contract rates to increase by the end of the year, with only 27% expecting the rise to be no more than 10%.

The key contributor for the pay hikes is anticipated to be the need to attract and retain key staff, according to 56% of respondents.