London finance hiring up 10% as market steadies

London finance hiring up 10% as market steadies

Morgan McKinley and Vacancysoft’s London Finance Labour Market Trends report shows renewed momentum in the capital’s finance sector in 2025, with hiring volumes trending upward in response to policy clarity and improved business sentiment.

UK-wide finance vacancies are forecast to rise 11% YoY, with London maintaining its dominance at nearly half the national share. Between January and June, finance hiring in the capital grew 10% YoY, supported by a sharp 24% quarterly increase, signalling renewed confidence after a period of uncertainty”.

June marked a turning point, with postings rising 21% compared to May offsetting April’s slowdown. London’s share of UK vacancies is edging up again, pointing to a possible re-concentration of activity after several years of regional dispersion.

Accounting and Consulting sectors gain ground, led by digital hiring

Hiring across accounting and consulting firms stabilised in 2025, with Q1 activity up 19% on the previous quarter and H1 volumes 18% higher year-on-year.

IT roles led growth, up 39% YoY, and now account for the largest share of professional vacancies. Executive management hiring also surged 66%, as firms invest in strategic leadership.

In contrast, traditional accountancy roles dipped 4%, while consulting remained flat. Expected changes to fiscal policy and tax regulation could drive further demand in advisory functions later this year.

Banking sector recovery supported by digital and operational demand

London’s banking hiring is recovering at a measured pace. H1 2025, finance vacancies in banking increased 8% YoY with Q1 up 26% on the previous quarter and a further 3% added to in Q2. Banking operations roles were up 38% YoY supported by demand in compliance, processing and service delivery. IT hiring continued their upward trajectory, increasing 16% YoY, as banks focused on automation, cybersecurity and infrastructure.

Executive-level recruitment was also up 11% YoY, while accounting roles declined 4% YoY, suggesting ongoing structural shifts away from traditional finance support roles toward more technology-driven functions.

David Neal, managing director, Morgan McKinley commented: “The UK financial services sector is evolving fast, with hiring trends shaped by rapid tech adoption, regulatory change and shifting workforce expectations. Roles in fintech, data, AI and cybersecurity are now central to operations, while regulation is driving demand in risk and audit functions.”

“Vacancysoft’s latest data shows a 10% rise in London finance vacancies year-on-year, signalling renewed momentum. But this isn’t a return to old patterns – flexible working is now standard, competition for specialist talent is fierce and firms are widening their search beyond London to secure the skills they need.”

Top hiring firms in London finance show Barclays rebound and JPMorgan expansion

Hiring trends among leading financial institutions have diverged sharply in 2025. JPMorgan saw a 22% increase in roles, driven by expansion in digital retail banking, ESG and compliance. Barclays, after a quieter 2024, boosted hiring by 55% as it redirected resources into corporate banking and finance transformation.

Deutsche Bank reported a 44% rise, mainly in internal controls and private banking. MasterCard registered growth of 35% YoY, fuelled by increased demand in digital payments, data governance and blockchain finance.

In contrast, HSBC scaled back hiring sharply by 49% YoY, following reductions in investment banking and global cost-cutting efforts. The divide between aggressive expansion and retrenchment is now setting the tone for London’s financial labour market heading into the second half of the year.

 Top 5 Companies, Finance Sector, Professional Vacancies, London, 2023 – 2025 (Jan/June) Est *

 

 

18/08/2025