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The Independent UK
The Independent UK
World
Alan Jones

More money concerns for London as City financial services jobs plummet: ‘A sobering picture of an industry’

Jobs in the City’s financial services sector have “plummeted” over the past year amid mounting challenges, according to a new report.

Services firm Morgan McKinley said its study suggested there had been an 18% reduction in the final few months of last year and a 12% annual decline.

Director Mark Astbury said: “The financial services sector in London suffered a contraction in 2024, with job availability plummeting.

“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.”

The job loss report comes on the back of a troubling week in financial terms, with rising government debt as a result of gilt yields pushing higher spelling the potential for public services cuts.

Meanwhile, 88 companies departed the London Stock Exchange in 2024 - the biggest number since the global financial crisis - while there have also been concerns over lower numbers of businesses planning to float in the UK over the past couple of years.

Although concerns over inflation increasing this year again have been sparked by companies needing to raise prices and slow hiring due to an impending rise in National Insurance and minimum wage payments, this doesn’t tell the full story as far as City jobs go.

Mr Astbury said the the hiring slowdown began well before the Chancellor’s Autumn Budget, highlighting “global economic fragility”.

He added: “High interest rates aimed at controlling inflation have tightened credit markets, reduced consumer spending and curbed corporate investment.

“These pressures had already caused a cooling of the jobs market long before fiscal policy changes were introduced.

“The budget’s measures, such as the planned increase in employer National Insurance contributions, will only exacerbate the strain on businesses, forcing many to implement hiring freezes or abandon growth plans altogether.

“While there were attempts to stimulate growth through targeted tax reliefs for specific sectors, the overall sentiment from businesses has been somewhat negative, leaving the financial services sector in a holding pattern as it cautiously approaches 2025.”

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