In the first quarter of 2024, there were 5,001 new jobs in the market, rising from the preceding quarter but way down from a year ago, suggesting that firms have become more cautious.

Cautious bankers, concerned about geopolitical tensions and cost pressures, have hit the brakes on job recruitment in London’s financial district, figures show.

Job openings in the City expanded by 20 per cent in the first three months of 2024 from the previous quarter but they slumped by a third (33 per cent) on a year earlier, according to recruiters Morgan McKinley.

There were 5,001 new jobs in the market in Q1 2024.

“In the management of talent/resource levels, we saw in 2022 the banks’ willingness and skill to respond, fast and aggressively, to maximise perceived opportunities on the up, and what we are seeing now is the same strength of reaction the other way as the firms settle into defensive mode,” David Leithead, chief operating officer, 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.

“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,” Leithead said.