London's finance sector is cutting jobs

London: Jobs crisis

In 2023, the number of vacancies in London's financial sector has fallen by a total of almost 40%. This was reported on Monday by the recruitment company Morgan McKinley. This decline is due to market volatility and high inflation. Analysts say this has prompted employers to take cost-cutting measures.

According to Morgan McKinley's London Employment Monitor, the number of finance-related vacancies fell by 38% year-on-year. At the same time, the number of job seekers has fallen by only 16%.

This means that the demand for professionals has decreased at more than twice the rate of the demand for jobs in this field. In the fourth quarter of 2023 alone, the number of available jobs fell by 42% compared to the same period the previous year. Many are comparing this drop to the crisis in 2008 - the last time such figures were available was then.

Despite strong profits in the banking sector, pressure on margins due to high inflation, a downturn in deal-making and escalating geopolitical tensions have taken a very negative toll. Some large employers, including Barclays and UBS, have made significant job cuts. The situation in the labor market is now almost catastrophic.

Analysts notice that after a year of strong wage growth and increased hiring due to the tight labor market, by the end of 2023, the market has noticeably declined.

The decline in the number of job seekers, candidates and vacancies means that employer confidence has dropped significantly. The main reason is the steady downturn in the economy. Overall, the job situation by the end of 2023 was about the same as it was in 2019 when the Covid-19 pandemic first started.



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