Recruitment into the financial services sector in the City continued to grow in January, according to the latest Morgan McKinley London employment monitor.

Figures show that financial services jobs rose by 60% for the month compared to January last year, rising from 2,898 openings in January 2009 to 4,646 in January 2010.

The month also saw a slight increase (3%) in the number of people looking for new jobs in the City compared to the same month last year. 

Average salaries remained stable in January, falling by 1% from £50,858 to £50,464 month-on-month and rising 1% from £49,983 to £50,546 compared to the same month last year.  

Andrew Evans, managing director of Morgan McKinley’s financial services division, says: “There were more new job opportunities in January 10 than at any point in 09, which is very encouraging. This month’s figures show a return to the slow but steady pattern of growth in financial services hiring that has been building up over the course of 2009.

“However, we are still a long way off pre-financial crisis hiring levels. A more accurate gauge of job growth is the 7% increase in job vacancies from November 2009 to January 2010 which indicates that January recruitment levels are in tune with the recent upward trend. Any further improvement in the hiring market over the next few months is likely to be gradual, reflecting the pace of recovery in the UK economy.

“Despite the expected month-on-month increase in professionals looking for new job opportunities in January, following the holiday period, there was only a modest 3% increase compared to January 2009 figures. However, a greater proportion of those starting their job search this January are likely to be doing so voluntarily. This would not have been the case this time last year.

“With improved confidence in the market, more job opportunities are starting to filter through and some bonus payouts having been announced; those in employment are becoming more inclined to kick off their job search.”