"Hiring across London's financial services sector softened in the final quarter of 2025 as organisations responded to economic, political and market pressures. While Q4 is traditionally the most conservative hiring period due to seasonality, this slowdown was amplified by global market volatility, US trade tensions and uncertainty ahead of the November budget. Signals around potential tax and levy increases, prompted many businesses to pause or reassess hiring plans. In London's internationally connected financial ecosystem, discretionary recruitment was deferred, while critical and strategically important replacement roles continued to be filled."
"Despite the quarterly slowdown, the broader picture remains resilient. Financial services vacancies in Q4 were 16% higher year-on-year, while total sector employment rose 12%. That resilience could have been stronger had 2024's budget taken a more business-supportive approach, particularly around the National Insurance increase, which dampened confidence. London continues to attract talent and investment but growth is increasingly selective and skills-driven."
Job openings across London's financial services sector fell 13% quarter-on-quarter in Q4 2025, while vacancies were 16% higher year-on-year and total jobs rose 12% in 2025 versus 2024. Hiring softened in Q4 as organisations responded to economic, political and market pressures, including global market volatility, US trade tensions and uncertainty ahead of the November budget. Signals about potential tax and levy increases prompted many businesses to pause or reassess hiring plans, causing discretionary recruitment to be deferred while critical replacement roles continued to be filled. The sector remains resilient overall, but growth is increasingly selective and skills-driven, with demand concentrated in roles supporting transformation and regulatory delivery. Technology, operations and change roles are priorities to support initiatives in 2026 such as capital and liquidity management, automation and operational resilience.
#london-financial-services #employment-trends #hiring-slowdown #skills-demand #regulatory-transformation
Read at London Business News | Londonlovesbusiness.com
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