Sacked staff find better paid jobs

Half of staff made redundant in the City of London are finding new jobs at higher salaries this year, compared to just 41% last year, a survey shows.

The report by Penna, a human resources management company, also found that 49% of staff who lost their jobs are finding new ones back in the City, up from 39% in the first half of last year. The rest find jobs elsewhere.

Grahame Russell, a director of Penna's City office, said: 'The figures reflect increased hiring by banks in the City. However the jobs upturn is slower than we thought it would be at the start of this year.'

Corporate finance was the healthiest sector, with 75% of redundant staff winning a higher salary this year than in their previous job. Transaction managers were in most demand, with one winning a 200% increase in total package.

In all sectors lower paid staff are more likely to win a pay increase than higher earners.

Networking is the most common method of finding a job, with 54% of staff using it successfully compared to 50% last year. More people are also finding jobs through recruitment firms than last year.

The survey covered staff on three-month outplacement packages at Penna during the first half of 2004.