London’s financial services sector continues to show resilience and growth, with job openings rising by 2 per cent in Q3 2025 and 9 per cent year-on-year, according to Morgan McKinley’s latest London Employment Monitor. The figures underline the capital’s enduring strength as a hub for financial careers amid economic uncertainty and accelerating adoption of artificial intelligence.
Mark Astbury, Director at Morgan McKinley, said the year-on-year growth signals upward momentum despite shifting market dynamics. While Q2 saw a slowdown driven by concerns over potential US tariffs, Q3 marked a partial recovery as firms resumed delayed hiring plans. However, with the UK’s Autumn Budget due in November, many businesses remain cautious, delaying rather than cancelling recruitment decisions.
Significant structural changes are reshaping the talent landscape. Administrative and junior roles are increasingly being relocated to regional centres like Belfast and Glasgow, driven by automation and centralisation. This has contributed to a drop in graduate hiring, particularly in insurance and other administration-heavy sectors. In contrast, London continues to dominate senior hiring—especially in technology leadership, corporate finance and AI strategy—as firms focus on high-value, strategic roles linked to regulatory change and digital transformation.
Fintech is a key driver of this growth. The sector has already posted 6,425 roles this year, surpassing last year’s total. This surge is fuelled by a five-year funding cycle and the commercialisation of AI platforms. London stands to benefit further from the £150 billion US–UK Tech Prosperity Deal, which aims to boost the UK’s digital economy, with the capital expected to capture the lion’s share.
Despite the positive trend, challenges remain. Banking and consumer finance firms continue to face consolidation pressures, with fewer vacancies due to cost-cutting measures. However, demand for back-office operational roles persists, driven by the need to manage automation, compliance and tariff-related complexities. Increases in employer National Insurance contributions and fiscal uncertainty ahead of the Autumn Budget also weigh on hiring confidence.
Earlier in 2025, Q1 brought a 12 per cent rise in financial hiring, but momentum was disrupted by geopolitical tensions and tariff uncertainty. This has led to a cautious approach to workforce planning throughout the year, with firms seeking to balance innovation with economic and regulatory headwinds.
Investment in AI continues to rise sharply. In 2024, financial institutions nearly doubled their AI spending, with 63 per cent now investing—up from 32 per cent the previous year. This is driving demand for professionals in compliance, risk, commercial and sales functions, particularly in fintech, where some firms report vacancy increases of over 200 per cent.
London remains a focal point for innovation and strategic hiring in the UK. Its leadership in AI-driven transformation and fintech growth places it in a strong position for continued success. However, the coming months will test whether government policy supports or constrains this progress, as employers and jobseekers navigate an evolving fiscal and technological landscape.
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