Finance firms ramped up efforts to hire workers in the year after Brexit, with big banks Barclays and JP Morgan and fintech Revolut leading the charge, according to exclusive figures shared with City A.M.
London banks, accountants and fintechs led the recruitment charge in 2022, offering more one in two of every vacancy in England and Wales in the financial services sector, according to research by recruiter Morgan McKinley and data analytics firm Vacancysoft.
Finance firms in the two countries tried to hire just over 87,000 workers last year, the highest level recorded by the two organisations and up more than 27 per cent on 2021.
The new research indicates the financial services jobs market is holding up well despite greater trade friction between London and Brussels after Brexit.
The Brexit transition period ended on 31 December 2020.
A deal establishing the framework of how UK banks and other financial services firms will interact with European customers has still yet to be reached.
There had been a litany of gloomy warnings in the run up to Britain leaving the EU about jobs flowing out of the City and into Europe.
Part of the rise in job openings may be driven by bankers who previously worked in London leaving after Brexit.
However, some of the world’s biggest banks ramped up recruitment activity in 2022, signalling sentiment toward London as a global finance hub is still strong.
A spokesperson for the Mayor of London told City A.M.: “Our financial sector is a national asset that’s fundamental to the economic strength of the whole country.”
“London remains a world-leading financial centre, which is continuing to create new jobs and opportunities for growth.”
Barclays was the busiest firm, according to the report, closely followed by Wall Street titans JP Morgan and Bank of America.
Job openings in the UK’s fintech sector collapsed in the second half of last year, tumbling from more than 5,000 in the first quarter to the lowest level since the end of 2020 in the final three months of the year.
Challenger bank Revolut led a strong recruitment drive last year.
Hakan Enver, managing director of Morgan McKinley, said: “Firms will need the right support and reassurance from the government to provide confidence in what is likely to be an uncertain year.”
“The government must take action to solidify the UK’s competitive advantage and inject investment into both London and the rest of the UK by increasing trade deals, simplifying tax and investing in technology innovation,” he added.
Vacancies in the final quarter of last year fell quickly, signalling the financial services jobs market could be in for a tougher time in 2023. Britain is expected to tumble into a long, albeit shallow recession, lasting all of this year.