London – Regional Labour Market Trends, July 2023
London recruitment levels down 38.2% on last year
Key findings include:
- There has been a 24% dip in vacancies in Q2 2023
- YOY IT drops from 31.5% to 26.1% of all professional vacancies
- Financial Services has risen from 20.6% of all jobs last year to 25.1% this year.
- Of the top 20 companies in London, only 4 have seen more vacancies this year than last
The impact of quantitative tightening on the British economy is starting to be felt, with Real Estate at the front line of this. As a result, vacancies across all industries are down 38.2% on last year, according to the new report by the Professional Body APSCo, and labour market data analysts Vacancysoft.
“The sluggish growth of the British economy is becoming evident, particularly in the real estate sector. London has been hit harder than the rest of the country, with a significant decrease in industry vacancies compared to last year,” according to Ann Swain, Chief Executive of APSCo.
IT as a function continues to be the leading area being recruited for, regardless of the crunch hitting the industry. In 2022, IT vacancies accounted for a substantial 31.5% share of the overall professional vacancy total. However, such is the dip in activity this year, the share has dropped to 26.1% in 2023 so far. Indeed, IT as a function is on track for a dip in vacancies of 48.9% year on year.
The overall fall in Technology has meant that Banking has become the leading sector in terms of vacancies, so far this year. Banks have accounted for 17.5% of the vacancies year to date, compared to 15.5% within Technology companies. Media companies as well seem to be under pressure, with vacancies down 56.3% on last year.
“With quantitative tightening taking effect, technology companies seeking funding are finding 2023 to be one of the toughest years on record, meaning that the expansive recruitment seen over the last few years has been on hold this year. However, we are starting to see signs of the technology market picking up, as summer progresses,” according to James Chaplin, Chief Executive of Vacancysoft.
Factor that of the top 20 companies in London in terms of vacancies last year, only 4 have seen an uplift in 2023 so far. The Banks lead the way in this regard, for example, Lloyds is projected to have a year-on-year change of 17.6% in professional vacancies this year too. A similar trend can be observed for NatWest Group, with a projected increase of 25.3% in professional vacancies for 2023.
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