The number of job vacancies in London’s financial sector fell sharply in the fourth quarter of 2024, marking the lowest level since June 2020.
According to Morgan McKinley’s London Employment Monitor, job postings dropped by nearly 20 percent compared to the previous quarter, with a total of 3,664 vacancies recorded. This figure represents a 12 percent decline from the same period in 2023 and a 28 percent decrease for the entire year compared to 2023.
Mark Astbury, a director at Morgan McKinley, attributed the decline to a combination of economic challenges.
“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,” he said.
Business Sentiment Declines Sharply
The downturn in vacancies coincides with a notable drop in business optimism among UK financial firms. The Confederation of British Industry’s (CBI) measure of sentiment fell to -28 percent in December, its steepest decline since September 2022, despite increased business volumes in the last three months of the year. This compares to a sentiment level of -13 percent in September 2024.
Survey respondents cited concerns over rising costs linked to Britain’s autumn Budget, when government announced a 1.2 percentage point increase in national insurance contributions paid by employers, along with a reduction in the threshold at which employers begin paying these contributions and an increase of the National Living Wage.
However, Astbury noted that the hiring slowdown began before finance minister Rachel Reeves announced tax increases to support public spending.
Challenges for the London Stock Exchange
Astbury also discussed concerns over London’s declining appeal as a destination for stock market listings, and how addressing this issue should be a government priority to revive growth.
“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,” he said.
