Financial Services is one of the largest industries within the UK, and contributes 8.3% to economic output. Overall the Financial Services industry employs over 1m people in the UK, and also runs significant trade surpluses, as a result, what happens in Banking is of direct relevance to the entire economy, and London in particular is of significance.
When examining recruitment activity in the capital, the signs are positive. Indeed, there has been a 24.6% increase in recruitment within Commerce & Industry in 2024 compared to the monthly average of 2023, with increases in retail, media, and technology. In contrast, regional activity has yet to experience such an upturn, with aggregate vacancies down by 5.4% so far this year and Commerce & Industry experiencing a 5.7% drop specifically.
The cyclical nature of Financial Services has meant that as interest rates rose, and the economy appeared on the edge of recession, recruitment slowed down significantly. All this has led to professional vacancies falling in 2023, with a 34% year-on-year decrease from 2022.
2023 has seen a significant drop in accounting vacancies across financial services and commerce & industry. March marked the year’s peak in financial services with 532 vacancies, a 31% decrease from 2022, and the only increase was a 12% rise in November, according to the latest UK Finance Labour Market Trends report by Morgan McKinley and market data analysts Vacancysoft.
Looking at 2023, there has been a significant decline in hiring across the risk & compliance functions. Nonetheless, the real story emerging is how these functions are becoming an ever greater department within fintech, according to the latest UK Finance Labour Market trends report by Morgan McKinley and market data analysts Vacancysoft.
