‘Seismic drop’: Brexit clobbers City jobs as vacancies fall 37%

European workers are heading for the City's exit door.

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European workers are heading for the City’s exit door.
source
Toby Melville, Reuters

  • Brexit uncertainty continued to “clobber” the City jobs market at the end of 2017.
  • Number of new jobs in financial services fell 37% year-on-year in December, according to recruiting firm Morgan McKinley.
  • “There are signs that European employees are becoming less captivated by the draw of working in this country,” Morgan McKinley’s Operations Director Hakan Enver said.

LONDON – The number of new available jobs listed in the the UK’s financial centre fell 37% in December year-on-year to 3,150, in another sign that Brexit is “clobbering” City hiring intentions, according to a survey by recruiting firm Morgan McKinley.

The number of people seeking jobs also dropped by a huge 30% from December 2016, while month-on-month that figure fell 40% from November.

Anyone moving jobs could expect a pay increase of around 14%, Morgan McKinley said.

“In December, the City is abuzz with holiday parties not hiring, so a drop is to be expected, but for it to be such a seismic drop is alarming,” Hakan Enver, Morgan McKinley’s operations director said in a statement.

“Brexit clobbered the City’s workforce in 2017. Anyone sticking it out into 2018 is in it for the long haul,” Enver said, adding that “there are signs that European employees are becoming less captivated by the draw of working in this country.”

Here’s the chart showing the plunge:

City hiring intentions December 2017

source
Morgan McKinley

As Brexit talks progress, the City of London’s continued role as the heart of the European financial centre remains under threat, with little clarity over what it might look like after Britain leaves the EU.

Signs remain clear that the UK is still headed for a so-called hard Brexit, which prioritises immigration control over membership of the European single market.

Such a move would also lead to the automatic loss of the City of London’s EU financial passport. The loss of passporting rights could be devastating to the City of London. The Financial Conduct Authority (FCA) said that 5,500 UK companies rely on passporting rights, with a combined revenue of £9 billion.

Morgan McKinley’s survey comes just a day after another major recruiter, PageGroup said that demand for recruitment services in the UK is dropping sharply despite much of the rest of the world enjoying a white-collar jobs boom.