Unprecedented events cause slowdown in City hiring
Key stats from Morgan McKinley’s Autumn London Employment Monitor:
- 28% increase in job seekers year-on-year (Q3 2022 vs Q3 2021)
- 14% increase in job seekers quarter-on-quarter (Q3 2022 vs Q2 2022)
- 21% decrease in jobs available year-on-year (Q3 2022 vs Q3 2021)
- 30% decrease in jobs available quarter-on-quarter (Q3 2022 vs Q2 2022)
- 20% average salary change moving from one job to another in Q3 2022
The latest employment figures from Morgan McKinley suggest the highest number of workers in the City’s Financial Services sector are available to work since 2017. According to the company’s recruitment monitor for Q3 2022, there was a 28% increase in the number of people actively looking for new job opportunities, compared to the same period in 2021.
There was a slowdown in hiring across the quarter, with a 30% decrease in jobs available compared to the previous quarter due to the unsettled economic situation and summer holiday season.
Hakan Enver, managing director, Morgan McKinley UK commented: “It’s been over a year since the economy fully reopened. We saw a sustained period of recruitment activity for most of that time, but now it seems hiring in the City’s Financial Services sector has slowed down a little.”
“Demand to hire dropped off by 30% in comparison to the previous quarter, and 21% when compared to Q3 2021. This slowdown in hiring over summer wasn’t surprising given the resurgence of post-pandemic overseas travel during which Heathrow regained its crown as Europe’s busiest airport. Similarly, September was a month like no other with the hotly contested race to be prime minister and the sad news regarding the passing of Queen Elizabeth II. Many companies understandably put processes on hold during the period of mourning, further impacting hiring rates.”
“The rush of jobs are not yet available for those looking for jobs in financial services, which is now at its highest level since 2017. The cost of living crisis is causing workers to feel the pinch and seek out new roles with higher pay, better work-life balance, increased job satisfaction and expanded benefits. This could partly explain the Government’s repeal of IR35 reform which, if not U-turned on the chancellor’s next statement, will pass the responsibility of status back to contractors. Considering the compliance and cost implications that many businesses have faced, this has created a talent shortage which has hindered growth.”
The average salary change for a finance professional moving from one job to another during Q3 2022 was 20%.
Enver commented: “Whilst we witnessed a higher supply of candidates coming to market, this didn’t impact the average salary change too drastically. Despite a 5% fall compared to the previous quarter, the average salary increase for a finance professional held at 22% (year to date). There is clearly a continued desire to hire the best talent and offer competition packages to secure those individuals.”
“We are seeing green shoots of companies needing to tap into talent and continue hiring for niche skills. The world is complex – businesses need sufficient guidance and resources to navigate financial, legal and regulatory issues and many are still replenishing their workforces after the pandemic.”
Enver concluded: “The past quarter has witnessed a noticeable resurgence of workers returning to the office on a more regular basis. Employers encouraging people to be in the office more frequently has led to busier City-bound trains and queues in favourite coffee spots as commuter numbers have nearly doubled in comparison to last year.”
