London Financial Job Vacancies Hit Lowest Point Since Mid-2020

Job vacancies in London's financial sector have fallen to their lowest level since June 2020, according to Morgan McKinley's London Employment Monitor. The fourth quarter of 2024 saw 3,664 job postings, a near 20% drop compared to the previous quarter and a 12% decrease compared to the same period in 2023. Overall, vacancies across 2024 were down 28% from the previous year, highlighting a significant slowdown in hiring activity.

Mark Astbury, a director at Morgan McKinley, described the figures as "sobering," reflecting an industry facing "mounting challenges, including economic volatility, geopolitical uncertainty, strategic overhauls, and the rapid pace of technological disruption." This confluence of factors has contributed to a cautious approach to hiring within the sector.

This data aligns with a CBI survey that showed a sharp decline in business outlook optimism for UK financial firms in the fourth quarter of 2024. While concerns about the autumn Budget were raised in the CBI survey, Astbury stated that the hiring slowdown began "well before" the budget announcement.

He emphasized the importance of restoring London's appeal as a listing venue, stating, "If the government is serious about reviving growth, an urgent priority must be to restore the London Stock Exchange's appeal and stem the tide of capital flight." This suggests a link between the health of the stock exchange and the broader financial job market in London.