Demand 'to spark graduate poaching' - graduate jobs

A surge in demand for graduate talent could lead to a City poaching war, new research by a financial services recruitment firm has revealed.

The average number of qualified candidates for each new City of London job vacancy has fallen from 5.7 in March 2009 to just 2.7 in March 2010, according to a study by Astbury Marsden.

Mark Cameron, chief operating officer at Astbury Marsden, said: "This time last year, few would have predicted such a dramatic turnaround in the City job market. These figures indicate we risk returning to the pre-credit crunch City employment market, with regular bidding wars and candidates juggling multiple job offers.

"The political storm cloud hanging over the financial services sector hasn't lifted yet. The banks face a dilemma - show extreme restraint on pay and face staff defections or pay up and risk the wraith of politicians.

"For teams and departments faced with more work or business opportunities than they can sensibly deal with, that choice is easy to make. Retaining staff is not just about throwing cash at them. Some employees can be won over by changing their job title, reporting lines or responsibilities."