London Q1 finance job vacancies plummet 31 per cent year-on-year

First-quarter job opportunities in London’s financial sector plunged by almost a third year-on-year, recruiter Morgan McKinley said on Tuesday, as firms struggle with economic and geopolitical headwinds.

The collapse of US lender Silicon Valley Bank and the rescue takeover of Credit Suisse by UBS (UBSG.S) last month has put thousands of UK-based finance roles at risk of redundancy, while there are few signs of an imminent end to the high inflation and energy insecurity that have crushed global economic prospects.

These factors, combined with the continued challenges to business posed by rising interest rates, are pushing employers to exercise caution in hiring plans, the recruiter said in its quarterly London Employment Monitor.

“After the boom in financial services in 2021, as economies reopened after pandemic shutdowns, last year was markedly slower for jobs,” Hakan Enver, managing director at Morgan McKinley UK, said.

“This has continued into 2023, with a 31 per cent decrease in jobs available due to economic uncertainty and the threat of redundancies compared to this time last year,” he added.

The number of jobseekers across the City surged 19 per cent in the first quarter compared with the last three months of 2022, Morgan McKinley said, with some workers chasing improved job security and others pursuing transfers to specialist green finance and environmental, social and governance roles, where demand for staff has been outstripping supply.

Reflecting the uncertainty, the survey also showed the uplift in salary secured by finance workers moving from one job to another in the first quarter had dropped to 18 per cent, pointing to the lowest salary increase expectations in almost two years.

“The market has almost become complacent, with many expecting to receive huge salary increases, but the market is responding to that demand, with companies being more realistic in what they offer, so as to minimise any internal disruption amongst incumbent employees,” Enver said.