New job vacancies within London’s financial services industry fell 9.8 per cent in November 2007 compared to October 2007 levels, but despite the fall on the month, new job numbers were still up 23.3 per cent on November 2006 figures.

These are the latest findings from recruitment specialist Morgan McKinley. Individuals looking for new career opportunities showed a decline of 3.9 per cent on October 2007 figures and as individuals await bonus payments, particularly at the senior level, the average salary fell 5 per cent on the month to £47,685 ($96,315).

With the credit squeeze affecting profits of a number of investment banks in the second half of the year as well as the usual seasonal factors coming into play, the drop in job numbers in November 2007 is expected.

Seasonality factors always hit the recruitment market in the last few months of the year with the focus predominantly being on replacement hiring rather than new job creation. In addition, where banks’ profits have been hit, staff costs, including bonus payouts, will inevitably be reviewed. However, the near 10 per cent drop in new job vacancies between October and November this year is similar to that of last year, which registered a fall of 12.4 per cent over the same month in 2006.

Robert Thesiger, chief executive of Morgan McKinley’s parent company Imprint said: “The reality is that it is almost impossible to predict the extent of the fallout at present. Recruitment activity in the middle and back office is still happening.”

The average basic salary drop was largely driven by director and senior level average salaries declining by 6.5 per cent.