Job vacancies in the City of London fell to their lowest level for almost five years at the end of 2024, according to a new survey by recruitment firm Morgan McKinley.
Openings tumbled by 18% in the final quarter of the year said the recruiter with a 12% decline over the whole twelve months.
Mark Astbury, a Morgan McKinley director, 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.”
Morgan McKinley said 3,664 City job openings were posted between October to December, against 4,483 three months earlier.
Astbury added that activity was slowing ‘well before’ the government’s Budget in October but the increase in National Insurance Contribution that kicks in from April has added to an already difficult situation.
“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.
Underlying the mood among employers, a separate survey of chief financial officers by accountancy firm Deloitte indicated business confidence was it lowest since 2023.
Deloitte, which surveyed more than 60 finance chiefs, said they responding to the higher NIC levy by raising prices.
Ian Stewart, Deloitte, said: “With cost control to the fore in the wake of the Budget, CFOs have trimmed expectations for corporate investment, discretionary spending and hiring in the next 12 months.”