LONDON (Reuters) - The number of job vacancies in London's financial sector dropped by almost a fifth in the last three months of 2024 compared with the previous quarter, to its lowest level since June 2020, Morgan McKinley's London Employment Monitor on Monday showed.
Job postings of 3,664 for the fourth quarter period were also down 12% on the final three months of 2023, while the number of vacancies across 2024 as a whole was down 28% on the prior year.
"These stark figures paint a sobering picture of an industry grappling with mounting challenges, including economic volatility, geopolitical uncertainty, strategic overhauls, and the rapid pace of technological disruption," said Mark Astbury, a director at Morgan McKinley.
The data comes as optimism about the business outlook for UK financial firms fell at the sharpest pace in two years in the fourth quarter of 2024, a survey by the Confederation of British Industry (CBI) showed on Thursday.
Respondents to that survey flagged concerns about increased costs associated with Britain's autumn Budget, but Astbury said the hiring slowdown began "well before" finance minister Rachel Reeves announced tax rises to support public spending.
Instead, Astbury pointed to London's dwindling appeal as a stock market listing venue as a key factor.
"If the government is serious about reviving growth, an urgent priority must be to restore the London Stock Exchange (LON:LSEG)'s appeal and stem the tide of capital flight," Astbury said.