LONDON (Reuters) – The number of jobseekers in London’s financial sector surged 19% in the first quarter compared with the last three months of 2022, Morgan McKinley said on Tuesday, as workers chased improved job security amid heightened layoff fears.
The collapse of U.S. lender Silicon Valley Bank and the rescue takeover of Credit Suisse by UBS last month has put thousands of UK-based finance roles at risk of redundancy, with few signs of an imminent end to high inflation and geopolitical woes that have crushed global economic prospects.
These factors, combined with continued challenges to business posed by rising interest rates, are pushing employers to exercise caution in hiring plans, the recruiter said in its quarterly London Employment Monitor.
“After the boom in financial services in 2021, as economies reopened after pandemic shutdowns, last year was markedly slower for jobs,” Hakan Enver, managing director at Morgan McKinley UK, said.
“This has continued into 2023, with a 31% decrease in jobs available due to economic uncertainty and the threat of redundancies compared to this time last year,” he added.
Reflecting the uncertainty, the survey also showed the uplift in salary secured by finance workers moving from one job to another in the first quarter had dropped to 18%, pointing to the lowest salary increase expectations in almost two years.
“The market has almost become complacent, with many expecting to receive huge salary increases, but the market is responding to that demand, with companies being more realistic in what they offer, so as to minimise any internal disruption amongst incumbent employees,” Enver said.
(Reporting By Sinead Cruise, editing by Elizabeth Howcroft)
