By Clare Hutchison
LONDON, Jan 13 (Reuters) - The number of new financialservices jobs in London rose for the first time in almost twoyears last month, research showed on Monday, which recruiterssaid was a sign that banks are starting to think about growthafter years of restructuring.
However, the number of jobs created in the whole of 2013fell 21 percent compared with the year before as the financialjobs market still struggles to recover from the effects of thefinancial crisis, after which a number of banks cut jobs orpulled back from certain activities to reduce costs.
In December, 1,340 new jobs were created in the Cityfinancial district, up by two thirds versus the same month in2012, according to research by recruitment firm Astbury Marsden.It was the first time in 22 months there had been a year-on-yearmonthly increase, the study said.
Investment banks created 67 percent more jobs than inDecember 2012.
Astbury Marsden said steady trading volumes encouraged Cityfirms to continue to support growth in equity and derivativestrading and a buoyant shares listings market encouraged banks todevote more resources to deal-making and execution teams.
The total number of roles created in 2013 fell to 27,915from 35,115 created in 2012, the research showed.
Astbury Marsden said there were some positives to be takenfrom the fact that the rate of shrinkage had slowed, however, astotal new roles in 2012 had been 35 percent behind 2011.
"What we are seeing is very far from a return to aggressivehiring, but it is a good sign that banks are thinking againabout growth," Astbury Marsden's Chief Operating Officer MarkCameron said.
Separate research released last week suggested financialservices institutions are finding it increasingly difficult tofind the right staff to fill roles and to keep top talent onboard.
TALENT BATTLE
In a survey conducted as part of recruitment firm RobertHalf's Salary Guide for 2014, almost all of the 100 executivesasked said it was a challenge to find skilled financial servicesprofessionals and 95 percent said they were concerned aboutlosing top performers.
A similar number said they were worried about losing toptalent to international competitors as a result of the EuropeanUnion bonus cap, which limits bonuses to no more than annualsalary, or twice that with shareholder approval.
Bonuses and executive compensation are particularly thornyissues in Britain, where many believe high levels of payencouraged the excessive risk taking that led to the financialcrisis.
People struggling in the economic downturn have beeninfuriated by companies, particularly banks rescued by thegovernment at the height of the crisis, which continue to awardpayouts many times the average wage.
Robert Half said almost two thirds of firms surveyed hadalready raised salaries by an average of 19 percent for topemployees to counteract the crimp on bonuses, while six in 10have also increased benefits for affected staff.
In November Barclays unveiled a plan to give seniorbankers additional monthly payments and last week an industrysource said HSBC is considering handing out new shareawards to around 1,000 top-ranking staff.
Many U.S. and European banks still have a long way to go toensure their bonus awards for London-based bankers comply withthe cap. Some bonuses awarded for 2012 performance were 5.4times salary, according to data disclosed by the banks andReuters calculations.