LONDON (Reuters) – Job vacancies in the finance sector in London fell by almost 40% last year, recruitment firm Morgan McKinley said on Monday, as turmoil in the financial markets and the High inflation has pushed businesses to cut costs.
Available jobs in finance fell by 38% in 2023 compared to the previous year, according to the London Employment Monitor published by the firm, while the number of job seekers fell by 16%.
The number of jobs available in the fourth quarter of 2023 fell 42% from the previous year, the largest decline since the 2008 crisis, according to Morgan McKinley.
Banks reported strong profits last year, but pressure on margins from high inflation, collapsing trading and geopolitical tensions have clouded the outlook.
Several large employers have cut jobs, further deteriorating the labor market, like Barclays which laid off thousands of employees. Its Swiss rival UBS is streamlining its workforce, including in London, after buying Credit Suisse last year.
“After a year of strong wage growth and excessive hiring due to a tight labor market, signs of cooling began to appear at the end of the year,” summarizes Hakan Enver, managing director of Morgan McKinley UK.
“We have seen a decline in the number of job seekers, the number of applicants and the number of jobs available. Employer confidence has declined due to the sustained economic downturn and conflict in the Middle East, prompting to limit spending and hiring.
However, Hakan Enver noted that the number of available jobs last year was about the same as in 2019.
(Written by Iain Withers, French version Corentin Chappron, edited by Blandine Hénault)
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