Scotland's financial pay holds up in global storm

Published on Friday 18 April 2008 00:51

FURTHER evidence emerged last night that Scotland's financial services sector is weathering the global economic storm after a survey revealed that salaries north of the Border were rising at more than four times the rate in London.

Average pay in the Scottish financial services industry grew by 11.4 per cent between March 2007 and last month, compared with 2.7 per cent in London and 4 per cent across the UK as a whole.

The average salary of a financial services worker in Scotland was 24,396, up from 21,893 last time.

Accountants in Scotland earn an average of 30,667, a rise of 1,665 compared with the same time last year.

The average salary in investment management – including front, middle and back-office salaries, but excluding bonuses – rose from 27,850 to 31,600.

However, rates for temporary workers in Scotland's financial service sector did not increase in line with full-time salaries, according to Joslin Rowe, the recruitment company, which compiled the report.

Average hourly rates for temporary workers were 8.48, compared to 8.36 in March 2007. In London, rates for temporary roles rose 9.4 per cent to 18.09.

The survey found the average time taken to fill a temporary vacancy in Scotland has fallen from eight days to about five days.

Scotland's financial services industry accounts for one in ten Scottish jobs, with more than 108,000 people directly employed in the sector and another 100,000 working in support services.

The industry generates 7 billion a year, or more than 7 per cent of Scotland's gross domestic product, according to Scottish Financial Enterprise (SFE).

Margaret Dyer, director of Joslin Rowe, said: "These figures are a clear sign Scotland's financial services sector remains robust despite the difficult global economic conditions.

"Edinburgh is the fastest-growing financial centre in Europe and firms are continuing to attract top financial talent.

"This is reflected in the current growth in salaries being enjoyed by candidates."

She added: "The lower rate for temporary workers in Scotland is a reflection of the healthy permanent job market."

Owen Kelly, chief executive of the SFE, said: "This report confirms that Scotland remains a very attractive place to work in financial services. We shouldn't be complacent since the figures cover a whole year, and circumstances have obviously changed in recent months, but it is another indicator of continued growth in the Scottish financial services industry.

"The survey does give us some cause for optimism that we'll be better placed than other areas to weather any downturn."

The new salary figures follow warnings that the sector is bracing itself for a challenging year ahead.

SFE's quarterly industry snapshot, prepared with consultancy Capgemini, revealed that about a third of respondents expect to report decreased business in the first quarter, with a similar number being pessimistic about the full year.

Meanwhile, research published at the end of last month by the CBI and PricewaterhouseCoopers found that, in recent months, the number of people employed by financial services companies in the UK fell at its fastest rate for five years.

According to the survey, around one in four firms in the sector has cut jobs in the past three months – the worst rate since the spring of 2003.