There was a 38 per cent decrease in finance job availability in London during 2023 compared to the previous year, according to data from recruiter Morgan McKinley.

During the fourth quarter of the year, there was a 42 per cent drop in job vacancies in the capital, the sharpest decline since the global financial crisis in 2008.

There was also a 16 per cent reduction in job seekers across the 12-month period compared to 2022.

Morgan McKinley UK managing director Hakan Enver said that while 2022 saw a very competitive job market driven by a robust year of wage expansion, this changed quickly in 2023 with indications of a market slowdown influenced by high interest rates, inflation, a shortage of workers and uncertainty around the world following the post-pandemic boom and geopolitical conflicts.

Following a year of strong pay growth and over-hiring driven by a tight labour market, signs of a cooling market emerged towards the end of the year.

The recruiter's figures come after global banks axed over 60,000 jobs last year following an increase in hiring during the pandemic, making it one of the most substantial years for cuts since 2008.

“Looking back to 2019, the number of jobs available in the City is on par following the tenacious rebound of significant hiring growth from the Covid-19 lows," said Enver. "There is a recurring two to three-year cycle, excluding 2018 with increases in 2007, 2009/10, 2012, and 2015 - approximately every three years.

"Although 2018 deviated from this pattern, there was another prosperous year in jobs in 2021. The subsequent decline raises the possibility that 2024 may mark the next cycle of increase.”

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