Resurgent Hiring in London’s Financial Sector: Quarterly Vacancy Growth amid Post-Brexit Adjustments and Geopolitical Tensions
Key stats from Morgan McKinley’s 2024 London Employment Monitor:
- 7% increase in jobs available quarter-on-quarter (Q3 2024 vs Q2 2024)
- 17% decrease in jobs available year-on-year (Q3 2024 vs Q3 2023)
The latest employment figures from Morgan McKinley suggest that the number of job openings in the City’s Financial Services rose by 7% in the third quarter of 2024 compared to the previous quarter and fell 17% compared to the corresponding period last year.
Mark Astbury, Associate Director, Morgan McKinley commented: “Job numbers in London’s Financial Services (FS) sector showed mixed trends in Q3 2024, with a 7% increase in vacancies quarter-on-quarter, but a 17% decline year-on-year. The recent quarterly rise reflects a resurgence in hiring activity, largely driven by projects in regulatory compliance, digital transformation, and ESG initiatives. This uptick may be attributed to increased stability under a new government, along with interest rate cuts in the UK, EU, and the US. However, a deeper dive into the year-on-year decline of 17% highlights broader challenges, with companies adopting more cautious hiring strategies amidst looming economic concerns and geopolitical tensions.”
“Several factors have shaped job creation in London, including heightened regulatory requirements around ESG, non-financial reporting, and risk and compliance, alongside a growing focus on digital innovation. The UK government's emphasis on green finance and technology investment has further bolstered job growth. However, the reality is that ongoing post-Brexit adjustments, inflation and economic uncertainty are forcing firms to cut back on aggressive hiring and prioritise strategic hires - emphasising cost efficiency over expansion. Firms are focussing on leaner and more focused teams.”
Looking ahead, London's Financial Services sector is poised for growth in areas such as transformation, sustainability, data analytics, and technology. Upcoming events like the UK budget announcement on October 30th and the US election will likely throw a spanner onto any immediate hiring plans. As the year winds down, it’s hard to expect a major uptick in hiring, despite the fact that business confidence is now at a nine-year high and there seems to be more positivity in the market.”
Astbury concluded: “Companies are addressing skills shortages by investing in reskilling initiatives, fostering diversity in hiring, and offering hybrid work models. Companies need to do more than just tick the right boxes. To remain competitive, they must prioritise flexibility, offer attractive compensation packages, and foster inclusive environments. Simply firms that don’t adapt will struggle to attract and more importantly retain top talent in an increasingly demanding environment. ”
About Morgan McKinley
Morgan McKinley is a global talent services expert, offering the full spectrum of solutions to meet employers’ and jobseekers’ needs. With 19 offices in 10 countries and nearly 1000 employees, it provides 3 distinct solutions for customers. Morgan McKinley Recruitment Solutions encompassing deep expertise across 10 professional disciplines offering temporary, contract and permanent recruitment; Morgan McKinley Executive Search for targeted C-Suite talent searches; and Morgan McKinley Talent Solutions including RPO, MSP and Total Talent Acquisition.
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