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City jobs boom cools

Last year was a boom time for jobs in London’s financial services sector, but a slowdown has begun and the next 12 months could see a squeeze on pay.

The latest statistics from the Morgan McKinley employment monitor shows there were 16% more City jobs in 2022 than 2021.

But the final quarter of last year saw an 8% decrease on the previous three months.

The stats come as major tech companies announce global lay offs and City banks cut headcount in response to lower levels of stock market activity – clients have been cautious, and few new businesses have come to market.

That has hit revenues across town, including notably at Goldman Sachs, which has already axed thousands of roles.

Hakan Enver, Managing Director, Morgan McKinley UK said: “It comes as little surprise that economic optimism and business confidence has fallen, however, the number of jobs in financial services in London throughout 2022 continued to rise post-Covid, reaching 2019 levels of hiring.”

Unlike in other sectors, notably leisure, there are plenty of finance workers available.

The Morgan McKinley figures suggest there are more workers in the City’s Financial Services sector available for work than has been seen since 2017.

Enver added: “Financial services and banks have had a strong 2022 and continued to hire throughout the year. Jobs available in the City increased by 16% in 2022 compared to 2021 but is noticeably less than the peak year of 2016. The number of financial services jobs in London has been shrinking over recent years with a shift in jobs due to Brexit and onshoring of business to other British cities as well as further afield to mainland Europe.”

City jobs paid 22% more in 2022 than in 2021 as banks, lawyers, insurers and others fought to keep the staff they value most.

With a likely recession looming, there are fears even the Square Mile will be hit.

Morgan McKinley thinks this downturn will be short lived however.

The survey said: “Although London firms could face a decline in investment over the coming months, the capital will come roaring back.  London is a strong market with lots of innovative businesses looking for finance, and lots of people looking to finance them.  Financial and related professional services contributed £261bn to UK gross value added (GVA) in 2021.”