City vacancies down 35% amid Brexit uncertainty

The number of job vacancies in the City has fallen by 35% in the last year, leading to concerns about future skills shortages, according to the latest London Employment Monitor from Morgan McKinley.

The figures show an expected month on month rise in job vacancies and job seekers – both are up 80% on December – but the yearly figures on jobs were down 35% and the number of professionals seeking new positions fell by 27%.

“Typically we see a more aggressive bounce back in January. However, this year we witnessed fewer jobs come to market, volumes that have not been seen since 2010,” said Haken Enver, Operations Director of Morgan McKinley Financial Services. He added that Brexit anxiety is making businesses more cautious about hiring than they have been since the 2008 financial crisis. “History is repeating itself,” said Enver. “We’re seeing business investments in entry level talent decrease, meaning five years from now there’s going to be a critical shortage of qualified mid-level professionals in the City.”

He added that the year-on-year decline in job seekers was further cause for concern. “Professionals looking for jobs  are now half of what they were in the January preceding Brexit,” said Enver. “It’s startling to see this figure continue its post-Brexit free fall so many months after the referendum.”

The latest CBI/PwC Financial Services Survey found that financial services sector optimism declined throughout most of 2017. Nine out of 10 businesses reported that they considered Brexit to be the number one threat to London’s status as a global financial hub. “The City’s climate of caution and confusion is a direct result of not knowing what a post-Brexit future holds,” said Enver.

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