10,000 more people want banking jobs in London. That's a problem
Turns out bank collapses do have an impact on the industry’s jobs market, but not on the number of people who want to work in banking.
A report by recruitment consultant Morgan McKinley found that, whilst the number of job openings in London’s financial services sector increased by around 250 (from 7,245 to 7,497) in the first quarter, the number of professionals looking for a new job went up by over 4,000.
Excluding the third quarter of 2022, that’s the highest number of professional jobseekers in London since the start of 2017 – and far off 2019’s numbers, the last “normal” year for economic conditions, in which the number of jobseekers fluctuated between 10,374 and 15,340, compared to the 24,959 people looking for new banking jobs in the first quarter of 2023.
The blame is to be laid directly at the feet of SVB and Credit Suisse says Hakan Enver, MD of Morgan McKinsley UK, who called the numbers “no surprise given the recent setbacks in the financial sector with news of redundancies, the collapse of Silicon Valley Bank and demise of Credit Suisse.”
Not only was the market tight for moving, but it was less rewarding. The average salary increase for moving jobs is now “just” 18%, which Enver said is the lowest salary increase for two years.
The 18% increase was about as much as could be “realistically” offered, “so as to minimize any internal disruption amongst incumbent employees,” said Enver.
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