City job openings set for ‘slight recovery’ after election-fuelled slump
Recruitment for London finance jobs is expected to stage a “slight recovery” under the new Labour government, according to new research, following a slump in June ahead of the general election.
There were 6,093 published vacancies across London’s financial sector from April to June, down 4.9 per cent from the same period in 2023, according to a report by recruiter Morgan McKinley and data firm Vacancysoft.
Still, the figures showed July was a record month for job postings after the general election. The report said the instalment of the new Labour government could help “translate into the sector starting to pick up once more”.
Banking, which accounts for an estimated 41 per cent of London finance openings, is poised to record its second straight annual decline in vacancies this year.
Last year’s 19,342 vacancies marked a sharp decline from 33,723 in 2022, while 2024 is projected to record 18,440 openings.
In contrast, the accountancy sector has seen a modest uptick so far this year, with openings on track to rise 7.8 per cent.
Tax has been one of the best-performing areas in accountancy recruitment following the election as the Labour government is expected to make policy changes.
Chancellor Rachel Reeves said last month that Labour would have to raise taxes in October’s Budget, with inheritance tax, capital gains and non-dom status under review.
“Looking ahead to the rest of 2024, there is cautious optimism for a slight recovery in the finance industry,” said Mark Astbury, associate director at Morgan McKinley.
“The accountancy and consulting sectors may continue to rebound as businesses seek guidance on adapting to new fiscal policies. Key factors influencing the banking industry’s trajectory include potential regulatory changes.”
“With inflation cooling and interest rates declining, confidence in the job market is expected to improve as we move into 2025,” he continued.
Among individual financial firms, JPMorgan topped a ranking for the most vacancies projected in 2024 for the third year in a row.
HSBC came in second place, with Europe’s biggest bank displacing Barclays – which came in fourth behind Visa.