The month of July saw a 27pc year-on-year drop in professional job vacancies in London, according to a new report.
A new jobs report makes for worrying reading if you’re looking for work in the financial services sector in London, with the stark 27pc drop in opportunities far outweighing the fall in those seeking employment.
Despite these significant figures, the results are “not as aggressive” as Morgan McKinley expected following Brexit, according to Hakan Enver, operations director at the company’s financial services division in the city.
Brexit effect
There are a few reasons given for the dip in job opportunities, as well as the dip in those looking for work.
In the former case, an absence of mergers and acquisitions post-Brexit as companies look to settle the nerves is one key ingredient.
“M&A is an excellent barometer of confidence in markets and hiring trends in supporting areas”, said Enver. “When deals are placed on hold, in many instances, so is hiring”.
In the latter’s case, moving jobs during times of general industry uncertainty is not always considered a positive move. “Jumping ship,” according to Enver, “is particularly risky.”
Surprisingly for some, the reluctance of the UK government to immediately enact Article 50 and start the two-year process of exiting the EU, as per the wishes of UK voters, has helped calm the waters a small bit.
New hope
“The prompt formation of a new government was encouraging”, said Enver. “And London mayor Sadiq Khan has emerged as a vocal champion of the city.”
Despite this limited positivity, a fall-off of more than a quarter in job opportunities in just one sector, albeit a major one, seems remarkable. Though logistically, Morgan McKinley does not envisage a worst-case scenario of many major employers leaving London for pastures new.
“An exodus would require individual businesses to potentially relocate thousands of employees, which simply isn’t logistically or financially feasible,” said Enver.
“Up to a million Londoners work in the financial sector. Only a small portion of them have the flexibility to up and move to a new country, and no other region can compete with the quantity and calibre of financial professionals.”
Wider issue
Despite this, there are some businesses, encouraged by the number of EU nationals working for them in the UK, seeking internal job changes in other EU countries.
Last week, a report from Markit and the Recruitment Employment Confederation (REC) found a “dramatic freefall” in the number of people hired into full-time positions across the whole UK.
Posting its weakest figures since May 2009, REC claimed a growing number of “highly-cautious” companies is a worrying sign.
“Economic turbulence following the vote to leave the EU is undoubtedly the root cause,” said REC chief executive Kevin Green.
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