London Banks Award New Hires 20% More Pay in July

Firms in London’s main financial district, known as the City, awarded new hires with an average pay increase of 20 percent in July as companies added employees in product control and information technology, a survey showed.

That’s the biggest average monthly pay rise since April and compares with a 14 percent gain in the previous month, Morgan McKinley, a services recruiter, said in its London Employment Monitor published today. The number of job vacancies jumped 10 percent to 9,315 in July from the previous month, while increasing 32 percent from a year earlier.

U.K. financial-services firms are adding staff in the wake a series of scandals ranging from mis-selling of insurance on consumer loans to manipulation of the London interbank offered rate. Lloyds Banking Group Plc, the U.K.’s largest mortgage lender, last month became the latest British bank to be fined for manipulating benchmark interest rates.

“City hiring remains exceptionally buoyant,” Hakan Enver, operations director at Morgan McKinley Financial Services, said in the statement. The increase in salaries “is borne out of the competition among employers to attract candidates with niche skill sets, while businesses are doing their utmost to ensure employees stay put by increasing their base pay.”

Hiring was spurred by a “huge amount of demand” for employees such as in human resources, IT and accounting, Morgan McKinley said. Firms also added more staff in product control and regulatory reporting roles, according to the statement.

The number of people looking for jobs jumped 40 percent to 7,953 in the month, while increasing 3 percent from the year-earlier period, according to the statement.

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