UK bankers 'being paid less'

Many bankers working in London will face year-on-year salary declines due to the ongoing turmoil in the financial sector.

According to new figures from recruiters Morgan McKinley, workers in UK investment banks, hedge funds and asset managers had starting salaries of around $95,000, Reuters reports.

This is down by around five per cent on May 2007, just before the beginning of the credit crunch.

A further study from financial recruiters Joslin Rowe found that starting pay had declined by four per cent over the year across the sector, taking it down to $80,000.

In a further sign that the financial sector is currently facing tough times in the UK, Morgan McKinley also found that the number of new jobs available in the City had fallen by 17 per cent.

"The increase in available talent means employers have a greater pool of choice when filling roles.

"This is driving wage inflation down when compared with last year," said Robert Thesiger, chief executive of Morgan McKinley's parent company, Imprint.

In a further sign that the financial sector is currently facing tough times in the UK, Morgan McKinley also found that the number of new jobs available in the City had fallen by 17 per cent.