Jobs outlook brightens for City professionals in 2017

December 2016 offered a more promising employment climate than its 2015 counterpart, but a record amount of City professionals put off job-seeking until 2017.

That’s according to the latest London Employment Monitor, released by recruitment specialists Morgan McKinley. December’s bonus season and the Christmas holidays usually generate a drop-off in job seekers; nevertheless, the 46% month-on-month drop is viewed as “remarkable”.

“After months of uncertainty, City professionals are jaded. The good news is, when they’re ready to start looking in the new year, they’re looking at a growth in jobs”, said Hakan Enver, Operations Director, Morgan McKinley Financial Services.

“December is always a quiet jobs month, so a drop in jobs month-on-month is to be expected”, he continued.

The London job market was unpredictable throughout 2016, with the final quarter of the year marking a decline. The year-on-year data, however, show that the year is continuing to outperform 2015. “We’re going into 2017 with an improved jobs landscape and expect to see a spike in hiring”, said Enver.

The signs also point towards fewer and fewer City employees receiving any year-end handouts. According to Emolument data, the number of bankers who received no bonus at all – a so-called ‘doughnut’ – in December 2016 was 13%, almost double the amount from December 2015.

A combination of stricter regulations and less fee-based revenue mean that banks operating in Britain are scaling back and changing their staff compensation models. As Enver confirms, this means “Institutions are having to be more strategic than ever with bonuses”.

He elaborated: “With the sharp decline in jobs during Q4 of 2016, it is no surprise to see the average salary change eventually fall to 13%. We witnessed a similar trend back in December 2015, with the majority of hires being made at AVP level and below. At this level, the likelihood is that firms will continue to invest in talent as there is minimal expectation to buy out any form of additional compensation.”