Job turnover fell sharply in 2003

Just 18% of job seekers in financial services moved company in 2003 compared to 25% in 2002 and 22% in 2001, according to the survey by Jonathan Wren, a recruitment company.

Philip Marks, the managing director, said the 2003 figure reflected the reluctance of staff to move job in an uncertain market, as well as a lack of positions available. 'I expect the figure in 2004 to rise. The recruitment market is improving and confidence is growing.'

The survey looked at more than 300 candidates seeking a job through Jonathan Wren. Equity traders suffered the biggest drop in 2003, with 25% moving job compared with 45% the year before. Marks said the 2002 figure was inflated by the 9/11 attacks in 2001, which pushed many recruitment decisions into the following year.

Despite the drop in 2003, equity traders remained the most likely to move of the eight sectors surveyed. The least likely were equity salesman, at just 10%, and foreign exchange traders at 15%.

Bond traders were less likely than equity traders to move job in both 2002 and 2003, even though these were excellent years for fixed income Marks said this was because banks made a big effort to pay fixed income staff well to ensure they did not jump ship.

Movement by fund management staff declined steadily from 2001 to 2003, reflecting the downturn in the sector.

Foreign exchange sales was the only sector where more staff moved job last year than in 2002. Marks said demand for forex staff increased last year and remained strong.

At 18%, overall staff turnover last year was higher than in the early 1990s, when the City was devastated by recession. In 1991 just 11% of Jonathan Wren candidates moved job.