London’s Financial Services Market Shakes Up
According to Morgan McKinley’s latest employment data, the buzz in London’s financial sector is louder than a ticker‑tape parade. Job openings jumped 3 % in Q1 2025 versus Q4 2024 and plateaued a hefty 14 % over the same period last year.
Key Takeaways
- Seasonal lift + 12 % in the first quarter, followed by an additional 3 % rise this quarter.
- Year‑on‑year boost of 14 % signals tempered but steady recovery.
- Hiring remains below 2023 levels, underscoring that the business comeback is still in progress.
Mark Astbury’s Snapshot
“Our London Employment Monitor shows a continued rebound in hiring,” says Mark Astbury, Director at Morgan McKinley. “After a 12 % seasonal bounce, we added back 3 % this quarter and saw a 14 % uptick year‑on‑year.”
But the market isn’t riding a wave — global volatility, Middle‑East tensions, and the mystery of new U.S. tariffs are keeping momentum leaky.
Fintech: Still the Life of the Party
Fintech is the star attraction, spurring demand for compliance and risk gurus. In Greater London, vacancies are forecast to rise 72 % in 2025, making it the UK’s top hiring hotspot.
Yet, many firms are playing it safe. Cost‑cutting, economic uncertainty, and the government’s hike in employer National Insurance are dampening confidence and slowing the hiring spree.
Recruitment’s New Playbook
AI and automation are the latest power‑ups. Companies are trimming the traditional “entry‑level” roles, investing instead in tech and operational transformation. The goal? Long‑term efficiency over quick headcount spikes.
Permanent hires edged up 3 % this quarter, but the contract market cooled after Easter. “Interim recruitment is on a quiet pause; firms prefer stable, long‑term teams over short‑term cover,” Astbury notes.
Looking Ahead: The Chancellor’s Message
The chamber may have something to say on 15 July. Expectations center on economic growth, unlocking pension capital for U.K. businesses, boosting financial competitiveness, and securing long‑term stability.
“Clear, action‑able measures are the hope,” Astbury says. “Agile, disciplined planners will thrive, even with ongoing headwinds.”
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