Inflation and supply-side disruptions are two key factors holding back finance job numbers, according to a senior economist at TS Lombard.

The comments came in response to the release of a report by recruitment consultancy Morgan McKinley that showed a decrease of 38% in available job postings in finance in 2023 compared with 2022.

The report also showed a 42% decrease in the last quarter alone, which it said is the biggest drop since the financial crisis fifteen years ago and a 16% decrease in job seekers over the course of 2023.

Both follow a Financial Times report at the end of December indicating that 60,000 jobs had been cut by global banks in 2023 in a retreat from the post-pandemic hiring boom, with UBS/Credit Suisse, Wells Fargo, Citi Group and Morgan Stanley cited as the biggest cutters.

The jobs data is corroborated by GlobalData analytics, which show a continued decline in active jobs within the industry since a peak in July 2022.

Konstantinos Venetis, Director of Global Macro at TS Lombard, told Retail Banker International that the data “underscores that fact that the job market is cooling, paving the way for a sustained decline in core inflation”.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

He also noted that supply-side disruptions such as skill shortages, particularly in the accounting sector, and skill mismatches “have not gone away” and that the legacy of Covid-19 and Brexit restrictions, which are easing but not fully dissipated, are other reasons for the decline in job openings in London’s financial sector.

Venetis added that general “belt-tightening” from the big global banks has also had an impact.