City financial services jobs plummet – report

Jobs in the City’s financial services sector have “plummeted” over the past year amid mounting challenges, according to a new report.

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Services firm Morgan McKinley said its study suggested there had been an 18% reduction in the final few months of last year and a 12% annual decline.

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Director Mark Astbury said: “The financial services sector in London suffered a contraction in 2024, with job availability plummeting.

“These stark figures paint a sobering picture of an industry grappling with mounting challenges, including economic volatility, geopolitical uncertainty, strategic overhauls, and the rapid pace of technological disruption.”

Mr Astbury said the the hiring slowdown began well before the Chancellor’s Autumn Budget, highlighting “global economic fragility”.

He added: “High interest rates aimed at controlling inflation have tightened credit markets, reduced consumer spending and curbed corporate investment.

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“These pressures had already caused a cooling of the jobs market long before fiscal policy changes were introduced.

“The budget’s measures, such as the planned increase in employer National Insurance contributions, will only exacerbate the strain on businesses, forcing many to implement hiring freezes or abandon growth plans altogether.

“While there were attempts to stimulate growth through targeted tax reliefs for specific sectors, the overall sentiment from businesses has been somewhat negative, leaving the financial services sector in a holding pattern as it cautiously approaches 2025.”