London's financial sector witnessed a nearly 40% plunge in job opportunities in the past year, according to recruiter Morgan McKinley. The London Employment Monitor revealed a 38% decline

in available finance jobs in 2023 compared to the previous year, accompanied by a 16% reduction in the number of job seekers.

The fourth quarter of 2023 saw a significant 42% drop in available jobs compared to the same period the prior year, marking the most substantial decrease since the 2008 global financial crisis, as reported by Morgan McKinley.

Despite robust profits for banks in the previous year, factors such as margin pressure from high inflation, a downturn in dealmaking, and escalating geopolitical tensions led to a less optimistic outlook. Notably, major employers, including Barclays and UBS, implemented substantial job cuts, contributing to the overall decline in the job market.

Hakan Enver, the managing director of Morgan McKinley UK, acknowledged the challenges, stating, "After a year of strong pay growth and over-hiring driven by a tight labor market, signs of a cooling market emerged as we approached the end of a challenging year." He cited a decrease in job seekers, candidate supply, and available jobs, with employer confidence dwindling due to a sustained economic slowdown and conflicts in the Middle East.

Enver highlighted that the number of jobs available in 2023 was generally comparable to 2019 levels, indicating a return to a more stable environment following the post-pandemic hiring surge. Photo by Phil Whitehouse, Wikimedia commons.