The figures point to a talent shortfall rather than a surplus of financial industry people struggling to find a job in London's City and wider financial community. Fintech is a particular driver.

London’s financial industry is recovering from the pandemic and on target to chalk up real growth this year, with 40 per cent more jobs advertised in the fourth  quarter of 2021 versus the same period in 2019, recruiter firm Morgan McKinley said yesterday.

More than a quarter of people surveyed (34 per cent) were looking for new job opportunities, the organisation said. When annualised, figures show a small change in total jobs available between 2021 and 2019.

“The future is bright for City recruitment as the country starts to see the light at the end of the pandemic tunnel. With many companies getting their heads around working from home in 2021 and children back in school, we saw the sector grow beyond pre-pandemic levels by the end of last year,” Hakan Enver, managing director, Morgan McKinley UK, said.

The report adds to a general sense that the jobs market for financial services – at least in certain fields – is tight, creating a challenge for wealth managers and others to source talent without busting their budgets. (See a story here.)

In total in 2021, there were 32,331 financial services jobs created in London, a 118 per cent surge from 2020 and a 30 per cent year-on-year increase in jobs seekers. The largest jobs rise came in Q2 2021, when there was a 211 per cent jump in new jobs available compared with the same quarter in 2020. The monitor also showed that recruitment activity dropped for Q4 compared with Q3 for jobs available (29 per cent) and job seekers (12 per cent).


Source: Morgan McKinley

“Thanks to the UK’s vaccine programme and people returning to the office, London’s financial sector is strong and thriving, bouncing back from the poor showing of jobs across 2020. In broad terms, the job numbers continued to reflect an encouraging recovery from the impact of Brexit, furlough scheme, pandemic, and lockdowns,” Enver continued. “However, there was a drop in jobs available in Q4 due to two main factors. Firstly, the emergence of the Omicron variant and activation of Plan B created some uncertainty across businesses. Second, the reduced headcount due to more people taking their annual leave at the end of the year, and businesses closing early for Christmas.”

Rising demand for staff will boost salary levels, he said. 

“With the increase in demand from companies looking to hire exceptional talent, this would naturally cause the price of hiring to increase. With slightly lower volumes of job seekers available compared to job opportunities, base salary increases held strong, as organisations tried their best to fend off the competition. The average change in salaries was comparable to those of 2018 and it is expected that they will remain as such through 2022 as competition for talent continues to dominate,” Enver said. 

The report also said that the figures showed that London has largely avoided the negative impact of the UK’s departure from the European Union. 

“Back in 2016, there were numerous reports circulating that up to 100,000 jobs would be lost from the UK to the EU following Brexit. Five years later, this hasn't happened and is likely never to happen in those volumes. Many institutions have either established a new entity abroad or enhanced their existing operations within a European jurisdiction. However, London continues to be a central location to conduct business,” Enver said. 

“According to the latest EY Financial Services Brexit Tracker survey, the number of relocations from London to the EU dropped year-on-year. Many investment banks have reconsidered their plans and as such reduced the number of roles they will eventually move. COVID has contributed to this with the concerns and restrictions around travel, particularly into Europe which has deterred many from relocating. The preference is to remain in London and consider an alternative role here, where the markets continue to be buoyant,” he added. 

The report said that fintech has become a growth driver for jobs in London. 

According to Innovate Finance, investment into UK fintechs jumped more than 217 per cent to $11.6 billion in 2021, second only to US firms. The technology sector has seen £26 billion in venture capital, record London listings, more jobs and a rise in the number of British unicorns to 116, the report added.