City jobs disappear as recruitment slumps in wake of financial turmoil

Job vacancies and recruitment activity in the City have plummeted, further adding to the gloom in London’s financial services market, according to a monthly report.

The London Employment Monitor by City recruitment firm Morgan McKinley found the number of new job vacancies within the City in August fell by 34% compared to a year ago.

Hiring in the City continued to slow as turbulent conditions within the global financial services market had a marked impact on activity levels. The number of new job vacancies fell by 34% during August, compared with the same month the previous year. This was also a decrease of 20% versus July 2008.

The report stated that following the collapse of Lehman Brothers, it was evident that the fallout from the credit crisis was not over. Robert Thesiger, chief executive of Morgan McKinley’s parent company, Imprint said: “The momentous events of the past few days have changed the landscape of not only London’s but also the global financial services sector.

“In the recruitment market, the tougher conditions were magnified during August as activity levels slowed and more financial services workers took their vacation. As a result, new job volumes and the number of individuals looking for new career opportunities were considerably reduced.”

With bonus season approaching, the survey of 161 financial services employers found that 59% expected their firm’s bonus pot to be smaller in 2008 compared with 2007.

A separate report by management consultancy Hay Group and the Centre for Economic and Business Research predicted that 110,000 banking and finance jobs could be lost in the UK over the next year.

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