Pay prospects improve for redundant staff

Staff made redundant in the City of London are increasingly likely to win a salary increase when they find a new job, a survey shows. They are also finding it easier to get back into financial services positions.

In the first quarter of 2004, 49% of people who found new jobs did so on higher salaries than in their last position, compared to 40% in the same period of 2003, according to the survey by Penna, an outplacement company.

Grahame Russell, director of Penna's City Office, said the figures show the job market is improving steadily. People on salaries below 50,000 ($75,000) are the most likely to win higher salaries.

Russell said: "Many people accustomed to base pay above 50,000 are joining boutiques or doing something entrepreneurial. They often go in on comparatively low salaries."

Penna surveyed its own clients for the survey, which also found that 47% of them found jobs in financial services this year, up from 40% last year - another sign that banks are taking on more staff.