The number of job vacancies in London’s financial services sector has fallen by 17 per cent in the third quarter 2023, compared with the same period 2022.
Morgan McKinley, a recruitment firm, attributes this decline in part to economic uncertainty, post-Brexit adjustment and global political events.
In recent years, the financial sector of the City of London (also known as “the City”) has been challenged by a variety of economic pressures including inflation, war and Britain’s exit from the European Union. Morgan McKinley’s recruitment data shows that hiring is slowing down as companies focus on managing uncertainty.
Economic Uncertainty & Strategic Hiring
Mark Astbury is an associate director with Morgan McKinley. He commented on the current economic climate and the slowdown of recruitment. Astbury stated that “ongoing post-Brexit adjustment, inflation and economic uncertainty is forcing firms to reduce aggressive hiring and prioritize strategic hires.”
Astbury emphasized that the hiring market is expected to remain cautious due to external factors. Astbury also highlighted that hiring is likely to remain cautious in the coming months due to external political factors.
Increased demand for compliance and ESG roles
Morgan McKinley’s data shows that, while overall hiring has decreased year-over-year in 2023, there was a 7 per cent increase in job vacancies compared to the prior quarter. The increase in hiring was primarily driven by the demand for certain specialised fields, such as regulatory compliance and digitalization. Roles in these areas are growing despite the economic uncertainty, as businesses continue to focus on adapting and improving their digital capabilities.
A growing number of professionals are being sought for ESG-related positions. The financial services industry is increasingly in need of experts with expertise in environmental, corporate social responsibility and governance initiatives as companies prioritize sustainability.
Brexit’s Impact on City Jobs
Michael Mainelli, Lord Mayor of City of London, gave his perspective on Brexit’s impact on the financial industry just a few days ago. Mainelli told Reuters that Brexit has resulted to the loss of 40,000 jobs in London’s financial center. Mainelli estimates that the City employed 525,000 people when the UK voted out of the European Union in 2016. However, many jobs have now been transferred to other European financial centres.
Mainelli stated that Dublin, which has gained approximately 10,000 jobs as a result of the exodus, is the city most affected. Milan, Paris and Amsterdam have also seen a rise in financial sector positions as businesses adjust their operations to Britain’s departure from the EU.
Mainelli said that Brexit was a disaster when describing the challenges faced by the City since the referendum. London is still a major financial hub, but the impact of Brexit continues to influence the recruitment landscape.
