The number of new City jobs rose by 7% month-on-month in July, according to the latest Morgan McKinley London Employment Monitor.

The monitor reveals that there was a 71% increase in new jobs in the City for the month, compared to July last year.

The data also shows that the number of professionals entering the financial services jobs market in July 2010 fell by 16% month-on-month, but compared to the same time last year, there was a rise of 23%.

Average salaries for those who landed new jobs in July were 3% lower than those starting new jobs in June.

Andrew Evans, managing director, Morgan McKinley Financial Services, says: “July 2010 has seen a healthy 7% increase in financial services job opportunities compared to the previous month.  This is the second highest level of hiring activity, not only this year, but since August 08, illustrating that the jobs market for professionals in financial services continues to follow a steady pace of recovery.  Over the last few months, our Employment Monitor has said that hiring will continue to be maintained in H2, although not necessarily at the same rate as the first half of the year.  Q1 2010 was particularly strong as the market received a boost following signs of economic recovery. The increase in recruitment levels at the start of July is a good indication that institutions will continue to recruit, although we are expecting fluctuations in hiring levels over the remainder of the year.

“This outlook must be balanced with caution as recent events such as global sovereign debt; reduction in UK consumer confidence; austerity measures and more recently speculation of a double dip recession in the US, have all led to an increased lack of visibility. We are yet to see how these issues will affect the recruitment market in H2 2010.

“We’ve seen fewer professionals looking for jobs in July 2010 with a 16% decrease compared to the previous month.  This shows a correction from a particularly high level in recent months as individuals responded to increasing demand from banks and other institutions across the City in the first half of the year. It also reflects the start of the summer holiday season with individuals waiting until the summer period is over before considering a job move.”