Economic uncertainty and technological shifts drive london job market down in Q2 2024
London finance recruitment trends so far in 2024 were clearly impacted by the general election, with a notable slowdown during June according to the latest UK labour market trends report by leading professional recruiter Morgan McKinley and market data analysts, Vacancysoft.
The banking sector continued its slump in 2024, with vacancies down 3% compared to last year. However, recent analysis suggests UK securities are undervalued, and with a new government, the sector might rebound — July has shown record performance. Tax has been a key focus for hiring, especially with Labour’s tax-raising agenda. As a result, tax roles have performed strongly, making the upcoming Autumn budget particularly significant.
Accounting and Consulting firms poised to benefit
In the Accountancy sector, vacancies are up 88% this year compared to 2023. The sector experienced a modest increase in activity driven by a surge in the first quarter, where volumes were 38% higher than in Q4 of the previous year. March was the peak month with 657 vacancies, coinciding with the budget release. However, Q2 saw a 14% decline compared to Q1, despite having more vacancies than Q2 2023. With the election concluded and the Government providing clearer guidance on spending and tax, recruitment has intensified. Accounting and Consulting firms are well-positioned to benefit as businesses seek strategic advice. While HR vacancies have decreased, technical roles, especially for qualified accountants, are on the rise, likely boosting H2 activity.
January 2024 banking surge shows strong sector recovery
January 2024 witnessed a significant rise in banking activity, with a 56% increase compared to the -28% decline seen in December 2023. Nevertheless, the first half of 2024 has shown a 2% decrease when compared to the last quarter of 2023. Q1 2024 recorded a notable 28% increase, marking the highest level since 2022. Following the election, there was a surge during July, leading to record vacancy levels. Banking remains the largest professional sector, representing 41% in 2024, with IT closely following at 30%. Overall, sector figures continue to decline, with 2024 expected to reach a total of 18,440.
Mark Astbury, associate director, Morgan McKinley comments: “Looking ahead to the rest of 2024, there is cautious optimism for a slight recovery in the finance industry. The accountancy and consulting sectors may continue to rebound as businesses seek guidance on adapting to new fiscal policies. Key factors influencing the banking industry’s trajectory include potential regulatory changes. With a new Labour government in place, shifts in policies affecting taxation and corporate governance could increase demand for tax advisory services.”
“Despite current challenges, London remains a key hub for finance vacancies, supported by its infrastructure and deep talent pool. With inflation cooling and interest rates declining, confidence in the job market is expected to improve as we move into 2025. As businesses adapt to new policies and global conditions, there is hope for stabilisation and potential growth throughout next year, paving the way for a more robust recovery.”
JP Morgan maintains the highest number of vacancies
JP Morgan continues to lead with professional vacancies amongst the top twenty organisations for the third consecutive year, with 964 vacancies as of July 2024, and is on track for a 5% increase from last year. In contrast, PwC reports the lowest vacancies among the Big Four, with 194 so far and a projected 333 by year end, marking a -13% decrease – the first time PwC has ranked lowest. HSBC Holdings plc is expected to be second in 2024 with 789 vacancies, a shift from Barclays in 2023 and Citigroup in 2022. Natwest and Lloyds are likely to see vacancies decline for a second year due to regional role reassignment.
Top 5 Company Table
Top Companies, All Vacancies, Finance, UK, 2022-2024 (Jan-July) (see report for Top 20)
| 2022 | 2023 | 2024 (Jan-Jul) | |
| JPMorgan Chase & Co | 2967 | 1581 | 836 |
| HSBC | 1322 | 903 | 371 |
| Visa | 830 | 457 | 345 |
| Barclays | 2336 | 1300 | 333 |
| Deloitte | 710 | 296 | 272 |
