London’s Financial Services and Fintech Job Market on the Rise
According to recent data from recruitment company Morgan McKinley, job openings in financial services and fintech in London surged by 14% year-over-year. Despite this positive trend, hiring levels are still below the peak levels of 2023, indicating a cautious recovery in the sector.
Recovery in Financial Job Openings
The latest employment report highlights that job vacancies increased by 3% in the second quarter of 2025 compared to the first quarter. This data signifies a gradual recovery in London’s financial sector after last year’s slowdown, although the recovery pace remains measured.
Diverse Demand in Fintech
Fintech companies are particularly active, with strong demand for roles related to compliance and risk management. Morgan McKinley forecasts a remarkable 72% increase in fintech hiring across Greater London throughout 2025, positioning it as the fastest-growing recruitment sector in the United Kingdom.
Factors Slowing Down Growth
Mark Astbury, director of Morgan McKinley, notes that various factors are hindering a more robust recovery. Global market volatility, geopolitical tensions, and uncertainties surrounding American trade policies have dampened momentum since the beginning of the year. Additionally, the British government’s decision to remove national contributions on employers’ insurance has also impacted business confidence.
Shifts in Hiring Preferences
While permanent hiring remains stable, with a quarterly increase of 3%, the contract market has softened recently. Companies are prioritizing stable, full-time positions over temporary roles, reflecting a focus on long-term efficiency amidst economic uncertainty.
The Role of Technology in Employment Trends
Artificial intelligence and automation are reshaping hiring dynamics, leading companies to streamline operations and reduce reliance on traditional entry-level positions. Increasing investment in technological advancements and operational improvements is evident as firms adapt to changing market conditions.
Anticipation of Government Measures
The finance sector is closely monitoring the upcoming speech by the Chancellor on July 15, 2025, for indications of measures that could stimulate business growth and enhance hiring. Observers expect discussions to center around economic growth and the future of London’s financial landscape, hoping for specific, actionable policies rather than broad ambitions.
In summary, while London’s financial services and fintech sectors show signs of recovery, it is essential for employers to remain agile and proactive in their hiring strategies to navigate the evolving job market effectively. For more insights and trends in the finance sector, refer to Morgan McKinley’s Quarterly London Employment Monitor.