A&F – UK Finance Labour Market Trends Report, June 2025
Regional demand and ESG reforms drive accountancy hiring surge in 2025
Key findings include:
- Two-speed recovery emerges as commerce and industry finance hiring rises 17% while financial service declines
- Retail, construction and engineering drive commercial finance recruitment
- AI, ESG and hybrid working reshape employer expectations across finance functions
- Morgan Stanley, BAE Systems and EG Group among top finance recruiters
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The UK finance jobs market is undergoing a structural reset in 2025, with commercial and industrial employers driving a 17% surge in accountancy hiring according to Morgan McKinley and Vacancysoft’s latest accounting and finance report, even as financial services hiring contracts under macroeconomic strain. If current trends continue, this will mark the strongest commerce and industry led rebound in over a decade.
The divergence is rooted in the macroeconomic backdrop. While high interest rates and reduced deal activity continue to weigh on banks and asset managers, firms in retail, infrastructure, and manufacturing are pressing ahead with transformation programmes. These include digitisation, ESG-driven reforms, and post-Brexit supply chain adaptations, all of which require strategic finance talent.
Financial Services feels the chill from the dealmaking slowdown
Vacancy levels across financial services are forecast to contract in 2025, with London expected to fall by 4% and the rest of the UK down 9%. Analysts attribute the decline to slower capital market activity, rising national insurance costs, and a cautious M&A outlook. The impact is uneven across sub-sectors.
Investment finance, while still the largest accounting employer in financial services, is expected to decline 6% year-over-year. Commercial Banking is expected to slip 4% and both general insurance and non-life insurance will drop by over 8%. Most notably, asset management hiring is forecast to halve, plunging 43%, as firms adopt a “wait-and-see” posture amid volatile fund flows.
On the other hand, consumer finance hiring is forecast to grow by 2%, reflecting cautious optimism around lending activity and household demand. Regionally, the North East and North West are showing resilience, with vacancy growth of 42% and 30% respectively.
Commercial finance rebounds on the back of structural change
In sharp contrast, the commerce and industry sector is witnessing a hiring surge. Vacancy levels in London are expected to rise by 15%, while the regions are set to expand by 18%. Employers are prioritising FP&A, ESG and transformation finance specialists to meet regulatory and data demands.
The South West leads the regional expansion, with vacancies rising 47%, followed by the West Midlands (29%) and Yorkshire and the Humber 37%. These gains reflect both economic diversification and a post-pandemic shift in employer location strategies.
Sectorally, retail and consumer Goods remain dominant, posting a 21% rise in finance roles. Real estate and construction is also recovering strongly, up 25%, while engineering is up 37%, boosted by capital investment in infrastructure and manufacturing.
“The accountancy and finance sector in 2025 is undergoing significant transformation due to technological advancements, economic instability and shifting employee expectations,” commented: Richard Speight, Associate Director | Accounting & Finance, Morgan McKinley. “Despite robust demand within commerce and industry, firms face challenges in recruiting individuals who possess both strong technical skills and the capacity for strategic thinking. To effectively attract and retain finance professionals crucial for managing change and fostering growth, employers must prioritise digital transformation and offer flexible work arrangements.”
Hiring strategies shift as employers look to transform talent
Corporate hiring priorities are shifting toward capability, not just capacity. Morgan Stanley is forecast to grow its finance headcount by 130%, a result of its expanded graduate and return-to-work programmes in London and Glasgow. Barclays is not far behind, with an 88% increase as it scales oversight functions. J.P. Morgan up 22% and Howden Group, up 46%, are also adding to their accounting teams.
Across the Commerce Sector, EG Group is increasing finance vacancies by 24% following asset restructuring. BAE Systems is up 61%, supported by defence contracts and export demand. Government-linked firms, such as Network Rail and Babcock, are hiring at a rapid pace, with increases of 68% and 94%, respectively, driven by infrastructure investment. Group M, one of the UK’s largest media agencies, is forecast to expand by 90%, reflecting the broader recovery in advertising and demand for commercially savvy finance professionals.
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