Ryan FowlerMorgan McKinley’s 2024 London Employment Monitor has revealed a continued downturn in job availability across the city’s financial services sector, with job postings falling by 18% from Q3 to Q4, a 12% year-on-year decline, and an overall 28% drop compared to 2023. The decline reflects mounting economic pressures, including high interest rates, reduced corporate investment, and persistent geopolitical uncertainties.
Commenting on the figures, Mark Astbury, director at Morgan McKinley, said: “The financial services sector in London suffered a contraction in 2024, with job availability plummeting. 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.”
Astbury noted that the hiring slowdown began well before the Chancellor’s Autumn Budget, indicating that broader global economic fragility played a key role. He added, “High interest rates aimed at controlling inflation have tightened credit markets, reduced consumer spending and curbed corporate investment. These pressures had already caused a cooling of the jobs market long before fiscal policy changes were introduced. The budget’s measures, such as the planned increase in employer National Insurance contributions, will only exacerbate the strain on businesses, forcing many to implement hiring freezes or abandon growth plans altogether.”
While financial institutions have adopted cost-cutting measures to weather the downturn, including redundancies and operational streamlining, Astbury highlighted concerns about London’s waning appeal as a financial hub. “The steady migration of companies choosing US exchanges over London has drained vital financial activity, slashing job creation and undercutting one of the city’s historical economic pillars. 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.”
Despite these challenges, there are signs of hope for 2025. The Bank of England predicts that wage growth will remain strong, which Astbury suggests could help sustain consumer confidence and spending. “Resilient wages are crucial as inflation remains above the 2% target until at least 2027. Meanwhile, forecasts for GDP growth of up to 1.7% and easing interest rates later this year provide a basis for cautious optimism.”
Looking ahead, Astbury emphasised the importance of embracing innovation and tackling systemic issues in the sector. “London’s financial services industry faces no shortage of challenges, but its resilience has been proven time and again. Technology and automation are transforming the industry, creating opportunities in areas like fintech and sustainable finance. By embracing these changes and fostering collaboration, the sector can reclaim its place as a global leader.”
