Morgan McKinley Spring London Employment Monitor: London Financial Services Sector on Road to Recovery as Vacancies Surge
The latest figures from Morgan McKinley’s Quarterly London Employment Monitor reveal that London’s Financial Services industry has returned to hiring growth in 2021, with overall job numbers and professionals looking for new roles in good health compared to the previous quarter.
London Employment Monitor Spring 2021 highlights:
- 70% quarter-on-quarter increase in jobs available
- 50% increase in March 2021 in jobs available compared to March 2020
- 4.8% quarter-on-quarter increase in job seekers
- 18% increase quarter-on-quarter salary change
Hakan Enver, Managing Director, Morgan McKinley UK commented, “Financial Services has had a strong start to 2021. As the vaccine rollout continues apace and the road out of lockdown clears, we are seeing the sector recover at a faster rate than anticipated. We expect this recovery and confidence to continue as the country unlocks and normal working life resumes.”
Hakan continued: “The 70% increase in job creation this quarter is encouraging and suggests that the crisis has turned a corner, with confidence growing, which in turn is fuelling hiring activity and momentum. Banks are back in expansion mode with a strong uplift in appetite for hiring experienced professionals.
“Questions remain around the impact on working culture, but it is clear that businesses have adapted well to flexible working. Time will tell whether we see people coming back to work full time or if some sort of hybrid model will emerge, ” said Hakan.
Despite the double whammy of the pandemic and Brexit, London remains a global financial centre holding on to the second spot (behind New York) in a study of Global Financial Centres Index (GFCI). According to PWC’s annual survey of global chief executives, the UK is a more attractive investment proposition than it was before Brexit, and is still considered.
In addition, Fintech has become an important part of the UK economy, with London attracting more private funding than all other European cities combined. 1,500 financial service companies applied for permission to operate in the UK, with around 1,000 of these planning to establish their first UK office according to financial regulatory consultancy Bovill.
Hakan concluded: “Our regulatory environment, like the Financial Conduct Authority’s sandbox scheme, and the government implementing fresh measures such as the Fintech fast-track visa scheme to support the sector, has meant that London continues to be recognised as a global financial centre and that businesses want to conduct business here. Our financial services sector has remained resilient and provided stability amid considerable economic uncertainty. This should translate into a boost to the economy and headcount in several growth sectors. The City is on par for a good recovery over the year, mirroring jobs available in 2018 with the easing of lockdown restrictions and shops reopening”.
Annual Salary Change
During Q1 2021, the average change in salary of those moving from one job to another was 18%.
Hakan commented: “As confidence grows, the data clearly shows the volume of jobs increasing within the financial services community. That said, the number of job seekers hasn’t been impacted in the same capacity, with many professionals considering their options before fully committing to exploring new opportunities. This has meant that businesses are having to consider applicants from a smaller candidate pool by making job offers more appealing. This is demonstrated in the percentage increase for changing jobs in March 2021 rising by 4% on average.”
