Hiring activity within the City’s financial services market is holding firm with job vacancy volumes up 2.3% on January, according to Morgan Mckinley’s latest employment survey.

However, the London Employment Monitor also reported a fall of 9.6% in new job vacancies year-on-year as uncertainty in within the financial services market continue, but they remained static compared to January’s +2.3% figures.

The number of individuals looking for new roles fell 7.3% compared with January when a surge of candidates tested the temperature of the jobs market pre-bonus payouts.

Candidate flow on the year remained relatively stable, up 3.3%, while the average salary fell 5.9% on the previous month and 1.9% compared with February 2007 to £50,119.

An increase in middle and back office new job vacancies in February indicates that healthy levels of hiring are still occurring within London’s financial services market, albeit at a slower pace than this time last year.

The number of individuals looking for new job opportunities in the City fell by 7.3% compared to January’s figures. While candidate movement on the previous year (February 2007) showed a slight rise (+3.3%) and new candidate numbers overtook new job numbers for the third consecutive month, the war for talent continues. Skilled middle and back office financial services professionals are still in short supply in London as well as globally.

Robert Thesiger (pictured), chief executive of Morgan McKinley’s parent company, Imprint, comments: "No one would disagree that the climate within London’s financial services industry is tougher than it has been for several years. However, in the main, the hiring market is holding firm with replacement as well as some expansion recruitment continuing to take place. As I’ve said previously, it is likely many banks will remain cautious until the end of Q1, by which time there should be further clarity globally as to how the financial services industry is likely to shape up for the rest of the year."