Job Vacancies in London’s Financial Sector Drop

LONDON (Reuters) – The number of job vacancies in London’s financial sector dropped by almost a fifth in the last three months of 2024 compared to the previous quarter, reaching the lowest level since June 2020, according to Morgan McKinley’s London Employment Monitor.

Job postings totaled 3,664 for the fourth quarter, marking a 12% decrease from the final three months of 2023. Additionally, vacancies across 2024 were down 28% compared to the prior year.

“These stark figures paint a sobering picture of an industry grappling with mounting challenges, including economic volatility, geopolitical uncertainty, strategic overhauls, and the rapid pace of technological disruption,” said Mark Astbury, a director at Morgan McKinley.

This data coincides with a survey by the Confederation of British Industry (CBI), which revealed that optimism about the business outlook for UK financial firms fell at its sharpest pace in two years during the fourth quarter of 2024.

Respondents expressed concerns about rising costs linked to Britain’s autumn Budget. However, Astbury noted that the hiring slowdown began “well before” finance minister Rachel Reeves announced tax rises to support public spending. Instead, he highlighted London’s declining attractiveness as a stock market listing venue as a significant factor.

“If the government is serious about reviving growth, an urgent priority must be to restore the London Stock Exchange (LON:LSEG)’s appeal and stem the tide of capital flight,” Astbury stated.