City of London ‘jobs spurt’ despite Brexit uncertainty

Fears over Brexit and the likelihood of offices relocating to other cities in Europe have done nothing to dampen the jobs market in London’s financial sector, according to an employment report.

Morgan McKinley’s London Employment Monitor recorded a ‘jobs spurt’ in March with a double-digit rise in sector vacancies last month, primarily in regulatory finance, FinTech and risk management.The total of financial services vacancies grew by 17 per cent between February and March, with last month’s total of 8,145 being 13 per cent higher than in March last year. The number of job seekers in the sector stood at 9,695, a quarter fewer than it was a year earlier.Hakan Enver, operations director for Morgan McKinley Financial Services, said announcements by banks and other financial companies to move jobs from London because of Brexit had not translated into job cuts in the capital.

Getting back to business

“Businesses are done trying to read the tea leaves to see what lies ahead, and they’re getting back to the business of hiring talent,” he said.“As London continues to attract investors from across the globe, institutions are grappling with the need to maintain access to the common European market, as well as the wealth of investors and economic productivity in and around London.“Instead of relocating to Europe, therefore, financial services are increasingly looking for the best of both worlds by keeping their foothold in London, and expanding operations in or to other European financial hubs.”
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Increase in salaries

Publication of the monitor followed a report from the Recruitment & Employment Confederation (REC) showing that employers were increasingly having to increase the salaries on offer to new recruits to secure the skills needed in the face of a tightening labour market.A survey of 600 companies found that more than 40 per cent of employers experiencing difficulties in recruiting suitably talented candidates were increasing the pay on offer. Almost half of firms surveyed said they expected to encounter skills shortages when hiring permanent staff over the coming months with construction, engineering and care sectors facing the most acute shortages.Kevin Green, REC chief executive, said, “Throwing money at the problem isn’t a long-term solution for employers, as they compete with each other for the available talent.“We need to train people up by embedding employability skills in schools, providing effective careers guidance and promoting apprenticeships. Employers should take responsibility for investing in training – it will help them retain staff and grow their own talent.”The survey found that hiring intentions remained strong, with 34 per cent of employers saying they would need to add new staff to grow their businesses, while another 46 per cent had “just a little” capacity and would have to add more staff if workloads increased significantly.
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The government is selling the Green Investment Bank to Australian firm Macquarie for £2.3 billion. The bank was launched five years ago to channel investment into low carbon development.Climate Change and Industry Minister Nick Hurd said, “The Green Investment Bank has been very successful in attracting private capital to the UK’s green economy. It now makes sense to move it into the private sector where it will be free from the constraints of public sector ownership, allowing it to build further on its success.”For related news and features, visit our Brexit section.Access hundreds of global services and suppliers in our Online Directory  Get access to our free Global Mobility Toolkit

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