Job vacancies in London’s financial sector fell by nearly 20% in the fourth quarter of 2024 compared to the previous quarter, reaching their lowest point since June 2020, according to

Morgan McKinley's London Employment Monitor released on Monday.

The report recorded 3,664 job postings during the final quarter, a 12% decline from the same period in 2023. Across the entirety of 2024, financial sector vacancies dropped by 28% compared to the previous year.

“These alarming statistics highlight an industry wrestling with escalating challenges, including economic uncertainty, geopolitical tensions, strategic reorganizations, and the relentless pace of technological innovation,” said Mark Astbury, a director at Morgan McKinley.

The figures coincide with a sharp fall in business confidence among UK financial firms, as revealed by a Confederation of British Industry (CBI) survey conducted in the fourth quarter of 2024. The survey marked the steepest drop in optimism in two years, with respondents citing concerns over rising costs linked to Britain’s autumn Budget.

However, Astbury noted that the hiring slowdown started "long before" Chancellor Rachel Reeves unveiled plans to raise taxes to boost public spending.

Astbury attributed much of the downturn to London's waning attractiveness as a venue for stock market listings, which has contributed to capital outflows.

“To stimulate growth, the government must urgently focus on revitalizing the London Stock Exchange and curbing the exodus of capital,” Astbury added. Photo by 0x010C, Wikimedia commons.