London’s financial services sector bucked the national trend in recent months as advertised job vacancies continued to grow.
Jobs market data has shown an increase in staff cuts and vacancies drying up this year, as bosses take action to limit staff costs amid economic uncertainty.
It also follows a sharp rise in labour costs following employer National Insurance contributions and national living wage hikes earlier this year.
But new figures from Morgan McKinley on Monday show job openings in London’s financial services sector were up 9 per cent year-on-year in the third quarter, rising 2 per cent on the previous quarter.
It came after a sharp dip in the previous quarter when uncertainty around potential US tariffs caused many firms to pause hiring.
The recruitment group said the figures signalled a City jobs market ‘that remains resilient despite seasonal and economic headwinds’, as well as ‘caution’ ahead of the November Budget.
London’s fintech sector has posted 6,425 roles so far this year already and has already surpassed last year’s total
Mark Astbury, director at Morgan McKinley, said: ‘Much now depends on the Autumn Budget and whether it reassures employers or adds further cost pressures that will set the tone for hiring into early 2026.’
He added that hiring demand is being driven by ‘higher-value positions’ in audit, tax and IT management – ‘functions that are critical as firms adapt to regulatory and digital change’.
London’s fintech sector has posted 6,425 roles so far this year already and has already surpassed last year’s total, according to Morgan McKinley, with growth ‘underpinned by the five-year funding cycle and the race to commercialise AI platforms’.
Astbury added: ‘Banking and consumer finance firms continue to consolidate with vacancies trending down as cost pressures mount. Yet even here, operations hiring is up, reflecting the need to shore up back-office capacity in response to complexity around tariffs, automation and compliance.
‘Looking more broadly, major US investment through the £150billion US–UK Tech Prosperity Deal will inject momentum into the digital economy. London stands to benefit most as the UK’s financial and innovation hub, funnelling capital, talent and expertise into the wider economy.’
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