London accounts for more than half of UK banking jobs as hiring recovers
Britain’s banking jobs recovery is becoming increasingly concentrated in London. Vacancies across the sector are forecast to rise 9% in 2026, but vacancies in the capital are forecast to rise 18%, compared with 1% across the rest of the UK, according to the latest Banking Market Trends Report from Morgan McKinley and Vacancysoft.
Between January and August, London vacancies were already 17% higher than a year earlier, while the rest of the country was broadly flat. London is now forecast to account for 53% of all banking vacancies, up from 49% in 2025, showing how quickly hiring is becoming concentrated in the capital following last year’s broader recovery in banking recruitment.
Commercial banking seen as the fastest-growing major function
The mix of banking jobs is changing and so is the geography of hiring. Commercial banking is forecast to be the fastest-growing major function in 2026, with vacancies rising 31% after falling 9% last year.
Technology hiring remains positive, but the pace is easing: IT management vacancies are expected to rise 14%, while IT development and engineering will increase by 8%.
By contrast, banking operations are forecast to fall 1%, while risk and compliance is forecast to grow just 2%. Accountant vacancies are also weakening, down 6% overall, pointing to a sharper focus on revenue-generating, technology-led and commercially-oriented roles across the sector’s hiring plans this year.
Manchester surges while former regional leaders fall
Manchester is emerging as the clearest winner outside London. Banking vacancies in the city are forecast to jump 69% in 2026, lifting its share of UK hiring from 3% to 5%. The wider North-West is expected to grow by 32%.
That marks a striking reversal from last year, when Glasgow and Belfast were among the strongest regional performers. In 2026, Glasgow is forecast to fall by 8%, Belfast by 10% and Edinburgh by 2%.
The result is a more concentrated regional map, with London strengthening its dominance and Manchester emerging as the clearest secondary banking growth hub. Together, London and Manchester are forecast to account for 58% of UK banking vacancies in 2026.
Chris Lawton, UK senior managing director at Morgan McKinley, commented: “The UK banking jobs market continues to show resilience, but the recovery is becoming more selective. The real story is not simply that vacancies are growing, but where that growth is happening and the skills employers are prioritising. London is strengthening its position at the centre of UK banking, while Manchester is emerging as a significant growth hub outside the capital. At the same time, demand is shifting towards commercial and technology-led roles, highlighting how employers are becoming more deliberate about where they invest.
“For employers, a growing market does not necessarily mean an easier hiring market. As demand becomes more concentrated around particular locations and capabilities, competition for the right talent is likely to remain strong. Understanding where demand is moving, investing ahead of it and staying close to the talent market will be increasingly important as banking enters its next phase of growth.”
Biggest banks take ore of the market
The employer rankings show the same concentration. JPMorgan Chase remains the largest recruiter, with vacancies forecast to rise 13%, while Barclays increases 24% and Citi 45%. Together, the three are expected to account for 23% of UK banking vacancies, up from 20% last year. BNY records the strongest proportional increase at 102%, with State Street up 40% and Santander up 36%.
Others are retreating: Lloyds Banking Group is down 16%, Visa is down by 31% and Nationwide has reduced by 39%.
The widening gap between expanding and contracting employers highlights how banking’s 2026 growth is being driven by strategic reallocation rather than broad-based expansion across the sector.
Top Companies: Banking Sector, UK, 2024–2026 Est
| 2024 | 2025 | 2026* (Est) | YoY% 26*/25 | |
| JPMorgan Chase | 2,556 | 3,170 | 3,573 | 13% |
| Barclays | 1,717 | 2,443 | 3,017 | 24% |
| Citi | 740 | 1,168 | 1,697 | 45% |
| Lloyds Banking Group | 1,612 | 1,942 | 1,631 | -16% |
| BNY Mellon | 478 | 536 | 1,083 | 102% |