London Finance Vacancies Drop 32% as Banks Retreat, Survey Saysby
Fall from October sharper than expected, Morgan McKinley says
Concerns over curbs on working visas for non-EU nationals
Job vacancies in London’s financial-services industry fell by about a third in November as firms curbed hiring plans amid broader economic uncertainty, according to a survey.
Vacancies in the capital’s financial districts fell 32 percent to 6,405 in November from a month ago and 13 percent year-on-year, recruitment firm Morgan McKinley said in a statement on Thursday. The number of individuals seeking new jobs also dropped by 27 percent from October to 10,492, the survey found.
“Macroeconomic factors continue to affect decision making in the banking and financial markets,” Hakan Enver, operations director at Morgan McKinley Financial Services, said in the statement. The risk of “economic instability due to the recent terrorist attacks, the financial crisis in China and the threat of the U.K. leaving the European Union,” are damping hiring plans, he said.
Global securities firms from Credit Suisse Group AG to Deutsche Bank AG and Morgan Stanley are all cutting staff in London and other regional hubs as regulators force lenders to increase funds they hold as protection against possible losses. Trading revenues have also been under pressure as a slump in commodity prices, a global equity rout, prospects of higher borrowing costs and faltering Chinese economy prompted investors to refrain from buying and selling assets.
Financial services firms in the U.K. have also expressed concerns that curbs on working visas to non-EU nationals will have a negative effect, Morgan McKinley said.
“There is a continuous demand for international talent that often cannot be sourced from with the U.K.,” Enver said. “The discussed visa restrictions are a real threat to the U.K.’s competitiveness.”