Rehired staff enjoy better pay on return

More than half, 53%, of clients of a UK outplacement group who found work in the second quarter of this year did so at a higher salary than at their last job, according to an upbeat report on employment prospects from Penna. Last year just 40% won an increase.

A total of 78% of redundant staff advised by the company have found work this year up from 72% last year. Linda Jackson, managing consultant of Penna, said: 'This is more evidence that the outlook is improving. There are glimmers of light, even in depressed areas such as corporate finance.'

The survey also found fewer redundant staff are leaving the City for new careers. The proportion has fallen from two-thirds last year to just over half. In June the company said the number of redundant staff on its books had fallen by a third from last year.

The survey covered staff from large investment banks as well as smaller companies.

Pay consultancies say remuneration has generally been falling, or increasing marginally.

Greenwich Associates, a US consultancy, said average pay for US portfolio traders in institutional trading rose 5% between 2001 and 2002 to $215,000.

Salaries and bonuses increased by $5000 to $125,000 and $90,000 respectively. Salaries for sellside portfolio traders in Europe have remained steady.

Steve Hanson, global head of portfolio trading at BNP Paribas, said: 'There has not been a discernible increase in recruitment in portfolio trading as there is a shortage of quality supply."