City Jobs Up 11% in February on Improved Business Confidence

Job vacancies in the City of London have risen 11 percent in February compared to the previous month, indicating a recovery in the British capital's job market.

Recruitment firm Morgan McKinley said in its latest London Employment Monitor report that newly available jobs in the capital rose to 2,583 in February from 2,331 in January. In February 2012, newly available jobs stood at 3,056.

"It's a promising start to the year to see job availability rise again," said Hakan Enver, operations director at Morgan McKinley Financial Services.

"It indicates there is still an appetite to hire with continued momentum following the increased number of available jobs in January."

The report, based on the company's own weekly records of new permanent job vacancies and new candidates registering with it for employment also said that the number of professionals entering the jobs market in February rose 4 percent month-on-month to 5,266 job seekers. However, the number declined by 13 percent from the same month, a year ago.

Enver said that the performance of the FTSE during February "will undoubtedly have raised the level of confidence across the City, which is always quick to be influenced by key indicators". Further, the Markit/CIPS Purchasing Managers Index that showed the fastest rise in business activity for five months in February revealed positive sentiment throughout the country.

Separately, the latest Business Trends Report by accountants and business advisers BDO LLP showed that the UK business confidence improved in February, with the BDO Optimism Index which predicts business performance two quarters ahead, standing at 90.6 in February from 88.9 in January, a 21-year low.

"There is still demand in the functions that require regulatory expertise," Enver added. "Also operations professionals are in demand, particularly within the investment banking and asset management sectors."

Additionally, employee remuneration continued to rise in London, with new jobs in February securing an average 10 percent rise in salaries.

Enver noted that the increase had been a trend over the past year which he expected to continue, especially due to the EU's plan to cap bonuses at 100 percent of annual salary.