London’s financial sector has seen a 19% increase in jobseekers in the first quarter of 2023, according to recruitment firm, Morgan McKinley.
The surge in jobseekers has been attributed to heightened layoff fears after the collapse of US lender Silicon Valley Bank and the rescue takeover of Credit Suisse by UBS, putting thousands of UK-based finance roles at risk of redundancy.
The London Employment Monitor also showed that salary increases for finance workers moving from one job to another in Q1 had dropped to 18%, pointing to the lowest salary increase expectations in almost two years.
Managing director at Morgan McKinley UK, Hakan Enversaid, “After the boom in financial services in 2021, as economies reopened after pandemic shutdowns, last year was markedly slower for jobs.
“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, “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.”
