There is good news for recruiters operating in the City of London as a new report reveals rises in salaries and job vacancies.

City recruitment company Morgan McKinley’s first London Employment Monitor shows an increase of 6.8% for the average salary to a mean of £47,483 in September 2004.

The lower and middle sectors of the market are benefiting from the highest pay rises. Employees in support roles have enjoyed a 12% boost to their pay packets, while those at financial controller level have taken home an extra 9%.

The number of new jobs in the City has jumped by 130% over the last year and the firm estimates that there are currently 9,200 job vacancies in the City. It takes 59 days to secure a job – a whole 11 days quicker than it was a year ago.

Morgan McKinley chairman Ken Brotherston said: “Demand for candidates is outstripping supply, putting pressure on employers to increase salaries and to speed up the recruitment process.”