London Q1 finance job vacancies plummet 31% year-on-yearm

As corporations face economic and geopolitical challenges, recruiter Morgan McKinley reported on Tuesday that first-quarter employment possibilities in London’s banking sector fell by roughly a third year-over-year.

The collapse of U.S. lender Silicon Valley Bank and the rescue takeover of Credit Suisse by UBS (UBSG.S) last month has put thousands of UK finance jobs at risk of redundancy, and there are few signs of an end to high inflation and energy insecurity that have crushed global economic prospects.

In its quarterly London Employment Monitor, the recruiter said these reasons and rising interest rates are making firms cautious about recruiting.

“After the boom in financial services in 2021, as economies reopened after pandemic shutdowns, last year was markedly slower for jobs,” said Morgan McKinley UK managing director Hakan Enver.

“This has continued into 2023, with a 31% decrease in jobs available due to economic uncertainty and the threat of redundancies compared to this time last year,” he said.

Morgan McKinley reported that City job seekers increased 19% in the first quarter compared to the last three months of 2022, with some seeking job security and others seeking transfers to green finance and environmental, social, and governance roles, where demand exceeds supply.

The poll also found that financial workers switching jobs in the first quarter received an 18% wage boost, the lowest in almost two years.

“The market has almost become complacent, with many expecting to receive huge salary increases, but the market is responding to that demand, with companies being more realistic in what they offer, so as to minimise internal disruption amongst incumbent employees,” Enver said.