City finance job vacancies plummet by 54% year-on-year, new Morgan McKinley report reveals

City finance job vacancies have plummeted by 54 per cent year-on-year, new recruitment firm data has revealed.

A Morgan McKinley report published on Monday found the drastic fall in the third quarter compared to the same period in 2019.

The London Employment Monitor report suggested the loss of work opportunities has been the result of a toxic cocktail of factors, including uncertainty arising as a result of the Covid-19 pandemic, its impact on banking profits, and concerns over the impact of a looming Brexit on the City.

Researchers found firms were advertising 3,810 roles in the three months to the end of September, up from Morgan McKinley’s calculated total of 2,490 available vacancies in June.

They also found a 4% year-on-year increase in job seekers attempting to find a new role in the sector.

Morgan McKinley managing director, Hakan Enver, said: “Businesses and job seekers are struggling with the impact of the pandemic and worried about what a second wave will mean.

“There are concerns for the long-term recovery and the free flow of capital and equivalence for U.K. financial services that need to be clarified.”

However, Mr Enver highlighted a 53% quarter-on-quarter increase in the number of jobs available in the sector, suggesting that the increase shows the financial jobs market is improving.

“While vacancies are nowhere near the levels of a year ago, this is a positive sign that the Financial Services job market in London is headed in the right direction,” he said.

The report comes after it emerged earlier this month that City firms have now moved more than £1.2 trillion and 7,500 jobs out of London ahead of Brexit.

The data from consulting firm EY, which released a report tracking 222 of the largest financial firms with operations in the UK, revealed that around 400 relocations were announced in September alone. Both Dublin and Frankfurt benefited instead.

The banking industry is having to adapt to ultra-low interest rates in place across major advanced economies as a result of the pandemic, with the Bank of England base rate currently at a record low of 0.10%.

Many banks, including Citigroup, HSBC and Deutsche Bank are making cuts globally, and many of those employed are being told to expect smaller bonuses this Christmas.