There was more good news for Britain’s businesses and their health and protection advisers this week when latest research showed that the City’s recruitment market is defying widespread predictions of prolonged downturn.
The latest figures from Morgan Mckinley’s Quarterly London Employment Monitor reveal that the City has weathered the worst of a “difficult” year in 2020.
A spokesperson for Morgan Mckinley said that Brexit, the pandemic, and a change in the US President had all been predicted to inflict “untold damage” at the heart of the UK’s financial sector.
But he said the employment figures “tell a different story”.
Morgan McKinley’s winter 2020 analysis shows that there has been a:
- 2% quarter-on-quarter decrease in jobs available
- 1% quarter-on-quarter increase in job seekers
- 14% increase quarter-on-quarter salary change
- 36% year-on-year decrease in jobs available
- 31% year-on-year decrease in job seekers
- 49% decrease from 2020 for 2019 for jobs available
Hakan Enver, managing director, Morgan McKinley UK commented said that Q4 ended with jobs seeing a small decrease of 2% which continued to counter the “massive drop” of 60% in Q2.
Enver said: “This shows real resilience and steadiness in stark contrast to the beginning of the year when overall numbers for 2020 fell dramatically compared to 2019.”
Enver added that banks, insurance and financial service firms have “fared well” by adapting quickly and responded to the needs of their employees and setting up remote working, which has ensured they can maintain business as usual.
Enver said: “Many employers are focusing on hiring when needed and feasible. We’ve seen growth in IT, marketing, and digital roles, whilst auditors outside the Big 4 have also been in demand.
“Brexit failed to deliver a big hit to financial services employment. Initial warnings that jobs would leave the City have been scaled back. More recently, much of the focus has been on the consequences of the imminent loss of Passport Rights. However, the City has had several years to prepare for the various potential outcomes of Brexit negotiations by reducing exposure and becoming more global.”
Enver said that the pandemic, number of lockdowns, initiatives to go back to the office and home-schooling have “undoubtedly” led to a drop in those looking for jobs by 31%.
But Enver added: “We saw less people looking for jobs due to a lack of physical meetings, the furlough scheme being in place and the sentiment by job seekers that they wanted to see the year through and restart the job search in the new year.
“Job numbers are steadily moving in the right direction. The financial sector is continuing to hire and we are seeing a renewed optimism as we head into 2021.”