The number of job vacancies in the City of London fell by more than 40% last month compared with the same period a year ago, according to Morgan McKinley, the financial recruitment specialists.

The decline coincided with a 42% rise in the number of financial services workers looking for a job in September following the “recent collapse of several major financial institutions”, said the recruitment company.

The 'substantial gulf' between the number of jobs available and those looking for work has begun to affect City salaries, which on average were 3% lower at £49,893 compared with September last year, said Robert Thesiger, chief executive of Imprint, Morgan McKinley’s parent company.

Financial Times