Shearman & Sterling has become the first firm in the City to announce its September retention rates, with the US firm set to retain 11 of its 12 of its qualifying trainees.

Shearman has offered 11 positions to its September qualifiers, equating to a retention rate of 92%. All trainees who were offered a job accepted the offer.

The firm posted the same retention rate last year, with 11 out of 12 qualifiers staying on at the firm.

Nick Buckworth, who recently took over as London managing partner from finance partner Anthony Ward, said: "We're delighted to offer jobs to so many of our trainees. Having young lawyers train with us and develop their careers with us is an important way of maintaining and consolidating the firm's culture. We value their contribution to the firm's growth and future success."

London human resources director Marcus Franks added: "We are very committed to our strategy of internal growth and are pleased with this year's outcome."

Shearman has 13 trainees joining its London office in September 2011. The US firm recently announced salary hikes for its English-qualified lawyers, increasing pay levels in the firm's three-tier merit-based system by as much as 15%.

Retention rates at City firms have seen an improvement as the effects of the recession beging to ease, with Allen & Overy offering 88% of its qualifying trainees a permanent position in March, while Norton Rose announced January retention rates of 87%.