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Sinead Moore 12 Dec 2016 12:23pm

First rise in City jobs since Brexit vote

The number of jobs available in the City of London climbed 6% year-on-year in November, representing the first rise in City job vacancies since the EU referendum

Morgan McKinley's London Employment Monitor recorded 6,780 new financial services jobs in the market in November 2016, up from 6,405 in November 2015, but down from 7,869 in October 2016.

The firm blamed the 14% decrease in month-on-month job vacancies on the looming Christmas and bonus seasons.

Hakan Enver, operations director, Morgan McKinley financial service said, “Heading into the New Year with a higher base of jobs compared to last year, bodes well for City employment in 2017”.

Job seekers were down 9% month-on-month (12,181 in November, compared to 13,389 in October), but increased by 16% year-on-year from 10,492 in November 2015.

“Redundancy numbers are up, so a spike in job seekers is to be expected”, Enver explained.

However, the report warned that the Bank of England stress test results, which were released in late November, will likely add anxiety to the UK’s hiring climate.

“Poor stress test performances always hit employment figures, because with spending cuts come job cuts”, said Enver.

The Employment Monitor recorded an 18% change in average salaries in November but warned that rising inflation will increase the cost of living, with wages unlikely to keep pace.

The report also highlighted ongoing uncertainty surrounding the UK’s Brexit negotiating positions and raised concerns that a hard Brexit could spark an exodus of skilled professionals from London, leading to a slowdown in economic growth.

“In the event of a hard Brexit, professionals will put their careers ahead of geographic preferences and in so doing, economic growth could stall by five to ten years,” Enver said.

A recent survey conducted by Morgan McKinley found that 62% of those working in key City industries would consider moving abroad to pursue professional opportunities with mainland Europe the most favoured relocation destination.

Enver added that Morgan McKinley has already seen a surge in top talent “considering European opportunities”.

Mayor of London Sadiq Khan previously warned that the impact of a “reckless hard-headed, hard nosed, hard Brexit” will not just affect the City of London but “would ripple out far and wide” with millions of jobs and billions of revenue lost across the country.

He added that the UK’s decision to leave the EU could have “the biggest impact on the City of London since the reforms of the 1980s”.

Khan stressed that in order for Britain to continue to prosper, “we need our financial services industry to continue to prosper too".

A separate report by Centre for Economics and Business Research (Cebr) warned that all major sectors in the UK economy risk being harmed if the government fails to retain access to the single market while a study commissioned by TheCityUK said a hard Brexit could cost the UK £10bn in taxes and up to 75,000 jobs could be at risk.

Brexit negotiations are set to begin in March when the prime minister triggers Article 50.

 

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