London’s financial industry saw a sharp drop in job vacancies during the fourth quarter 2024. This is the lowest number since June 2020.
Morgan McKinley’s London Employment Monitor shows that job postings have dropped by almost 20 percent in comparison to the previous quarter. A total of 3,664 positions were recorded. This represents a decline of 12 percent from the same time period in 2023, and a decrease of 28 percent for the whole year when compared with 2023.
Mark Astbury is a Morgan McKinley director who attributed the decline in sales to a combination economic challenges.
He said: “These sobering figures paint a picture of a sector that is grappling with mounting issues, such as economic volatility, geopolitical uncertainties, strategic overhauls and the rapid pace technological disruption.”
Business Sentiment Drops Sharply
The decline in vacancies is accompanied by a significant drop in optimism in UK financial firms. Confederation of British Industry (CBI) measures of sentiment dropped to -28 per cent in December. This is the steepest drop since September 2022 despite an increase in business volume in the last quarter of the year. The sentiment level in September 2024 was -13 percent.
The survey respondents expressed concern over the rising costs associated with Britain’s autumn Budget. This budget announced a 1.2 percent increase in employers’ national insurance contributions, a reduction of the threshold below which employers must begin to pay these contributions, and an increase in the National Living wage.
Astbury did note that the hiring trend began even before Finance Minister Rachel Reeves introduced tax increases to fund public spending.
London Stock Exchange: Challenges and Opportunities
Astbury discussed London’s declining popularity as a stock market listing destination, and how this should be a priority for the government to revitalize growth.
He said that if the government was serious about revitalizing growth, it must restore the London Stock Exchange’s appeal and stop the flow of capital outflow.
