Skip to content
City PM
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Opinion
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Opinion
Monday 16 June 2014 1:07 am  |  Updated:  Wednesday 29 May 2019 9:14 pm

Skills shortage pushing up pay across the City

By: Express KCS

Add as a preferred source on Google

HIRING jumped in financial services last month as the economic recovery takes hold in the City, according to figures out today from recruiter Morgan McKinley.

But a lack of suitably skilled workers is a problem for businesses who are raising pay to attract the best staff.

And the increased competition for talent is also pushing firms to offer their staff better conditions and perks to persuade them not to jump ship.

May saw 7,410 new vacancies come onto the market, up 15.3 per cent on the 6,426 in the same month of 2013.

A recruitment drive from banks for new accountants is a key factor, as lenders take on more staff to cope with compliance regulations.

However, it is down on the 8,955 newly advertised jobs in April – a fall Morgan McKinley blamed on the extra bank and school holidays in May.

But even as the number of job vacancies increases, the number of workers looking for a new position fell. Just 4,911 registered to look for a new job in May, down 10.5 per cent on the year.

As a result, wages are still being pushed up – workers starting new jobs were paid an average of 15 per cent more in their new positions than in their previous jobs. But current employers are fighting back.

“There are huge skills shortages in [compliance] and banks are doing their utmost to keep the specialists they already have, as it is more cost effective than hiring new staff,” said Morgan McKinley’s Hakan Enver.

“Hiring managers are having to consider other ways to tempt their key staff to stay put, such as incorporating variety and fresh challenges into roles.”

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • News

Categories

  • Business

Related Topics

  • Skills shortage

Trending Articles

  • Top Burnham adviser calls for capital gains and inheritance tax hikes

  • Housebuilding giants hit with £4.5bn lawsuit for allegedly overcharging buyers

  • Brewdog chief executive quits after only one year

  • A meeting with the breakfast king of Mayfair

  • As it happened: Stocks jump on defence and metals boost; Oil on track to shed a fifth on US-Iran peace hopes

More from City PM

  • ‘Centre of gravity is shifting’: UK fintech hiring to switch focus from neobanks

    Fintech
    Modern office workspace with a laptop displaying financial data charts, emphasizing digital transformation in business ana...
  • UK finance workers weigh quitting over back-to-office mandates

    Business
    London office workers collaborating on AI and tech projects, surrounded by computers and digital interfaces in a modern wo...
  • As it happened: Choppy finish for FTSE 100 as global markets rocked by AI sell-off

    Markets
    Breaking news concept with a digital globe, network connections, and binary code representing global communication
  • Job vacancies fall again in unemployment risk 

    Economics
    People waiting outside a job centre, highlighting unemployment issues and job search challenges in the current economy.
  • Unemployment back up as UK job vacancies fall

    Economics
    Office for National Statistics
  • ‘It will reduce jobs’ – Jamie Dimon sounds off on AI’s impact on banks

    Banking
    Jamie Dimon caution echoes a recent alert from the Bank of England’s Financial Policy Committee (FPC) on Wednesday, which highlighted stretched valuations in AI-focused tech companies.
  • Jobs slump as economy ‘held up by uncertainty’

    Economics
    Rachel Reeves speaking at an IOD event.
  • London to be hit hardest as jobs market struggles through 2026

    Economics
    London has defied national trends as job postings in the capital rose.

City PM — European politics, business and analysis.

Europe

  • Germany
  • France
  • Europe
  • UK & Ireland

Topics

  • Business
  • Markets
  • AI
  • Technology
  • Opinion
  • Energy

More

  • Politics
  • Economics
  • Fintech
  • Legal
  • Sport
  • Life

Company

  • About City PM
  • Editorial Policy
  • Corrections
  • Contact
  • Terms of Use
  • Privacy Policy
  • Cookie Policy
© 2026 City PM · Published by CityPM Media, Bahnhofstrasse 65, 8001 Zürich, Switzerland
About · Editorial Policy · Corrections · Contact · Privacy