Jessica Fino 9 Nov 2017 11:49am

Brexit uncertainty slows City jobs

The number of jobs available in the City of London has declined in October, making it the lowest month for jobs in 2017

According to Morgan McKinley’s employment monitor, there was a 14% drop in available City jobs from September to October, and 20% year-on-year. This was despite a 6% increase in professionals seeking jobs in the financial capital from a month earlier.

The London-based recruiter said that the jobs market was hurt by continuing uncertainty over Brexit.

“The economic tug of war that Brexit kicked off means we still have no idea quite where we’ll land,” said Hakan Enver, operations director at Morgan McKinley’s financial services sector.

The slow recruitment month foreshadowed a quiet end to the year , he predicted.

Morgan McKinley welcomed the government’s economic impact studies on the potential consequences of various EU exit scenarios, with financial services being one of the sectors measured.

Enver said, “It’s reassuring that the government is taking the impact on the City seriously enough to include it in its short and long-term planning.”

The government was criticised for not releasing the reports but this week was ordered to publish them immediately by Commons speaker John Bercow.

The Recruitment and Employment Confederation (REC) published its quarterly report on jobs, which revealed staff appointments increased at the softest pace for six months.

During October, staff vacancies rose sharply across the country for both permanent and temporary roles, but the availability of workers declined.

This led to increases in pay, with starting salaries rising sharply in a bid to fill up the shortages in the job market.

Accounting and financial staff remained at the top of the rankings for permanent staff demand, followed by IT & computing and engineering.

Kevin Green, the REC’s chief executive, said, “The data also shows that growth is slowing down and one of the reasons is that we simply do not have enough people for all the roles that are out there at the moment. And the number of vacancies is still getting higher.

“For jobseekers this is good news as employers are willing to pay higher starting wages to attract the right candidates.”

The REC said the sector needed clarity around what future immigration systems would look like after Brexit, adding that otherwise employers would face even more staff shortages as EU workers continued leaving the country.