The average number of qualified candidates for each new City job vacancy has dropped, new figures show.

People who have set up a recruitment agency aimed at serving the UK financial services sector may be interested to hear that the average number of qualified candidates for each new City job vacancy has dropped.

Research by Astbury Marsden has revealed that the average declined from 5.7 in March 2009 to just 2.7 a year later, which could see a return to "aggressive poaching" of top performers as was the case before the credit crunch, warned the firm.

The company said tightening market conditions will mean employers will need to focus on employee retention strategies if they want to hang on to their best workers.

"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," explained chief operating officer Mark Cameron.

Those looking to set up a recruitment agency were recently advised by an industry insider to focus on niche markets if they want to improve their chances of success.