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City hails 'roaring twenties' as banks start hiring again

·Business Reporter, Yahoo Finance UK
·3-min read
Canary Wharf viewed from Tower Bridge
Data showed that overall job numbers and professionals looking for new roles in the City grew in Q2. Photo: Justin Tallis/AFP via Getty Images

London’s financial services industry has sprung to life with a rebound in recruitment activity, new data has shown.

Hiring in the latest three months of the year rose at its fastest rate since the third quarter of 2019, Morgan McKinley’s London Employment Monitor revealed, sparking a “roaring twenties” type bounceback.

The data showed that overall job numbers and professionals looking for new roles in the City grew in Q2 compared with the previous quarter.

There was a 22% quarter-on-quarter increase in available jobs and a 211% year-on-year increase, which Morgan McKinley called a clear sign of a V-shaped recovery from COVID’s devastating impact on the jobs market.

The study also showed a 43% rise of jobseekers in the last quarter compared with the three months prior, with a 17% rise in average quarter salary change, similar to previous quarters.

Read more: Hiring boom in finance as London job listings surge

“Fourteen months ago, Rishi Sunak announced an ‘economic intervention unprecedented in the history of the British state’. As we now emerge from lockdown, we're experiencing a rebound in economic activity and across recruitment,” said Hakan Enver, managing director of Morgan McKinley UK.

He added: “There's a sense of real momentum and gratitude for the UK's successful vaccination programme that has been critical to getting us back on track. This is set to continue in the capital with the lifting of all restrictions, increased spending, the continued vaccination rollout and people returning to the office.”

The easing of the long third lockdown saw the UK economy bouncing back quickly and enjoy its fastest growth in more than 70 years. It is expected to expand by a further 7.25% this year, according to the Bank of England.

The Recruitment and Employment Confederation’s latest Jobs Recovery Tracker showed 1.55 million job adverts in the UK and almost 200,000 new job postings. This was more than before the onset of lockdown in March 2020.

Read more: Why staff need a say in flexible working arrangements

According to a survey by Centre For London, Londoners are feeling more optimistic about the city and its employment prospects than at any other point in the last year.

Enver said: “There’s been pent-up demand from professionals waiting until more certain times to make a move. Lockdown has given them time to reflect and assess their careers, leading to an increase in jobseekers.

“However, questions remain around the long-term impact, how employers will adapt to flexible working, and how workplace culture can be maintained as more people work flexibly. We’re seeing an environment where the candidate dictates working conditions and can be selective on where they work.”

Watch: What is the Job Support Scheme and how has it changed?