RiskBrexitLondon jobs market shows post-Brexit resilience

London jobs market shows post-Brexit resilience

Despite the uncertainties created by the UK referendum on its European Union membership, employment in the capital was resilient following the shock result says Morgan McKinley.

Despite Brexit and its immediate aftershocks, last month saw a total of 9,060 available jobs in London’s financial services market – an increase of 18% from May – reports Morgan McKinley.

 

Chart 1: Financial services jobs new to the market June ‘16

Morgan McKinley fig1

Chart 2: Professionals seeking new roles June ‘16

Morgan Mckinley fig2

However, in its latest monthly employment monitor the services recruitment firm reports that the salary increased typically enjoyed by financial professionals moving jobs has dropped significantly.

Chart 3: Average change in salary each month June ‘16

Morgan McKinley fig3

“Considering, we entered the month with a degree of uncertainty, it was a surprise to see so many jobs released,” said Hakan Enver, operations director, Morgan McKinley Financial Services. “A good portion of the jobs available came in during the last week of June, indicating that financial institutions held off on hiring until the referendum results were out.

“We expected to see those looking for new roles holding back because of Brexit, but the increase shows that professionals are also thinking about their next steps. It’s encouraging to see that businesses are still investing in staff, and it’s a relief that the markets have largely absorbed the initial referendum results.

Since the referendum was first announced four months ago as being held on June 23, there have been mounting concerns about City jobs moving to mainland Europe. “So far, talk of an exodus has been just that: talk,” said Enver. “London remains an incredibly attractive city for investors and the UK will obviously remain a strong trading partner with the European Union (EU), so people expect London to remain the leading finance centre of the world”.

“The bigger concern now is a political one. With the resignation of prime minister: David Cameron and leadership fights across the political spectrum, it remains unclear if Britain will trigger Article 50, hold a second referendum, or work to renegotiate the terms of British EU membership. Investors are likely to hold off on making any significant decisions until they see what course of action the next government will pursue. The longer this period of uncertainty lasts, the greater its potential impact on employment”.

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