Job openings in London’s financial services fell 33% in Q1 2024 when compared to the corresponding period last year, according to Morgan McKinley’s 2023 London Employment Monitor.

At the same time, there was a 20% increase in jobs available quarter-on-quarter (Q1 2024 vs Q4 2023).

David Leithead, COO, Morgan McKinley UK, said, “Whilst the first quarter of 2024 saw an improvement on the previous quarter, this was largely due to normal seasonal factors, Q1 tending to see the release of new budgetary year hiring sign-offs, coupled with an urgency to front load the year’s hiring (even if limited) to maximise its impact. The more telling figures are the steep decline compared to Q1 2023 and this shows that overall the city continues to rein in hiring, to low levels last seen when the pandemic hit, and before that, during the Global Financial Crisis.”

Leithead continued, “It’s not all doom and gloom because the banks will be ready to spring back into hiring mode when the chance arises: it’s in their DNA to seek out and create opportunity. Short term volatility itself lends chances, and the medium-term outlook for M&A and underwriting looks quite positive. So we expect things to improve at some point perhaps in Q3 or Q4.”

 “In the meantime limited growth and pressure on costs means lower volumes of hiring from the front office through all areas of the infrastructure, and lower budgets for projects and initiatives,” Leithead said. “Attritional/replacement hiring continues, particularly in SMEs. Specialism is key: even in defensive mode banks want to defend better than their competitors and will fight for the top talent to help their mission.”