Want a job in London finance? There’s a 30,000-person queue
If you're looking for a new financial services job in London before Christmas, then good luck. Job openings are down dramatically, and the number of people looking for jobs is at a five-year-high.
Morgan McKinley, the recruitment consultancy, estimates that job openings dropped by 30% in London’s financial services sector in the third quarter compared to the second. At the same time, it estimates that the number of people looking for new finance jobs in London is at the highest level since early 2017.
As the chart below shows, the upshot is that there were nearly 3.5 people chasing each financial services job in Q3, compared to fewer than 2 in Q1. This was a more favourable ratio than during the bad days of 2020, but is still far above the long term average.
The rush of job-seekers and reduction in jobs follows a significant slide in 2022 investment banking revenues, with sharp falls in M&A advisory revenues and equity/debt underwriting worldwide.
Morgan McKinley pointed to a difficult environment for banks, compounded by the chaos precipitated by the new Prime Minister's mini-budget and the hiatus in activity following the death of the Queen.
The cost-of-living crisis was identified as a significant motivator for the rise in those seeking jobs, with many looking not only for an increased pay packet but also “better work-life balance, increased job satisfaction and expanded benefits,” according to the recruiter. Moving jobs brought a 20% salary increase on average, according to Morgan McKinley.
Average salaries in London's financial services are up 22% YTD, by Morgan McKinley’s estimation, despite a 5% downturn compared to 2Q2022.
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