- 12% increase in job seekers year-on-year (Q1 2023 vs Q1 2022)
- 19% increase in job seekers quarter-on-quarter (Q1 2023 vs Q4 2022)
- 31% decrease in job available year-on-year (Q1 2023 vs Q1 2022)
- 3% increase in job available quarter-on-quarter (Q1 2023 vs Q4 2022)
- 18% average salary change moving from one job to another in Q1 2023
The latest employment figures from Morgan McKinley suggest that the number of candidates looking for jobs has increased in the City’s Financial Services sector since Q4 2022. According to the company’s recruitment monitor for Q1 2023, there was a 19% increase in the number of candidates looking for work and a 3% increase in jobs available compared to the previous quarter despite an overall 31% decrease in jobs compared to Q1 2022.
Hakan Enver, Managing Director, Morgan McKinley UK commented: “The City’s financial service industry is experiencing a surge in candidates with a 19% rise in the first quarter of 2023, according to our latest London Employment Monitor. This comes as no surprise given the recent setbacks in the financial sector with news of redundancies, the collapse of Silicon Valley Bank and demise of Credit Suisse. Financial services professionals are looking for their next role as the UK continues to show its strength and resilience, having avoided the contagion effect of the 2008 financial crisis.”
Enver continued: “During the latter half of 2022, the UK faced political turbulence, rising energy prices, and increasing interest rates, leaving few reasons for optimism. However, as 2023 begins, the mood has shifted with strong spending and improved business confidence, aided by a warmer winter and suggesting that the worst of the economic downturn may be behind us. These positive signs indicate that the economy may have turned a corner, with job growth in financial services rising by 3% in comparison to the last quarter of 2022. Furthermore, the UK is pushing to work with the EU on financial services regulation now that an agreement on post-Brexit trade with Northern Ireland has been reached, demonstrating the nation's openness to business. This is echoed by Deloitte’s UK CFO Q1 2023 report that suggested sentiment among finance leaders of the UK’s largest firms has improved significantly since the start of the year.”
Enver continued: “After the boom in financial services in 2021, as economies reopened after pandemic shutdowns, last year was markedly slower for jobs. This has continued into 2023, with a 31% decrease in jobs available due to economic uncertainty and the threat of redundancies compared to this time last year. However, due to the increase in candidates, we’re finding clients are more cautious and there are longer sign-off processes.”
Enver concluded: “Despite the decrease in overall demand and increase in supply, there is a desire to hire and grow - the job market in London's financial services industry is set to grow even further over the course of 2023. London held onto its crown as the favourite destination for investment in 2022, with $20 billion pumped into the capital's start-ups. In comparison to wider financial services talent, the competition for green business experts has grown due to the ever increasing focus on Environmental, Social and Governance (ESG) frameworks. Demand for green talent, skills and experience has been outstripping the supply. We're going into a busy time, with lots to be optimistic about.”
Average Salary Change
Hakan Enver, Managing Director, Morgan McKinley UK commented: The average salary change moving from one job to another during Q1 2023 was 18%, indicating the lowest salary increase expectations in almost two years. That said, an 18% uplift is still an attractive hike and one that should still motivate those who are actively searching for, or at least considering, a move to a new company. The market has almost become complacent, with many expecting to receive huge salary increases, but the market is responding to that demand, with companies being more realistic in what they offer, so as to minimise any internal disruption amongst incumbent employees.”