A continuing lack of confidence in the global financial markets prompted further deterioration of London’s financial services recruitment market during December 2008, according to the latest figures from financial services recruitment specialist Morgan McKinley.

The data did not, however, break down the losses into wealth management, investment banking and retail banking. To date, the wealth management sector has been relatively unscathed compared with hard-hit investment banking.

The number of new job vacancies opening up within the City fell by 65 per cent against December 2007; there was also a drop of 52 per cent during December 2008 compared with November 2008, the sixth consecutive month of decline.

The number of candidates who began looking for a new job was down 15 per cent on the same month the previous year and 35 per cent on November 2008 as fewer vacancies and worries about the health of the economy deterred people from changing jobs.

Individuals who did secure a move during December 2008 took an average of 76.3 days – almost a month longer than their counterparts did a year ago.

The average City salary registered was £49,420 ($72,287), down 1 per cent compared with December 2007.