London Finance Jobs Post `Seismic' Drop in Sign of Brexit Impact

Published 11/01/2018, 11:01 am
Updated 11/01/2018, 11:58 am
© Reuters. London Finance Jobs Post `Seismic' Drop in Sign of Brexit Impact
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(Bloomberg) -- Job vacancies in London’s finance industry fell 52 percent in December, the most in three years, according to a survey.

Recruitment firm Morgan McKinley attributed the drop partly to the holiday season and said its findings underscored the looming “Brexodus” from the City -- particularly since there was also a 37 percent decline in job openings year-on-year.

“In December, the City is abuzz with holiday parties, not hiring, so a drop is to be expected,” Operations Director Hakan Enver said in the report, published Thursday. “But for it to be such a seismic drop is alarming.”

Morgan McKinley cited firms’ frustration at the lack of progress in carving out a Brexit divorce agreement and said that a lot of good news -- such as an increase in the number of skilled-worker visas being issued -- was being overlooked in the confusion. Goldman Sachs Group Inc (NYSE:GS)., Deutsche Bank AG (DE:DBKGn) and Bank of America Corp (NYSE:BAC). are all said to be moving operations away from London in favor of cities such as Frankfurt and Paris in case of a no-deal departure.

There was a 30 percent drop in the number of London professionals seeking new positions in December compared with a year earlier, dwarfing the decline in 2016, Morgan McKinley said. And those bankers that did move jobs last month saw a 14 percent average salary increase -- among the smallest of 2017.

“Brexit clobbered the City’s workforce in 2017,” Enver said. “Anyone sticking it out into 2018 is in it for the long haul.”

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