“Dramatic decline” in finance jobs as Deutsche Bank swings ax
Jobs in financial services suffered a “dramatic decline” in the second quarter, new data show.
Recruiter Morgan McKinley’s second-quarter London job monitor, released on Monday, saw a 33% drop in the number of finance jobs on offer in London. There were 50% fewer vacancies compared to the same quarter last year.
The new data came just hours after Deutsche Bank announced plans to cut 18,000 jobs globally as part of a sweeping turnaround plan. Other major banks have also announced job cuts this year.
READ MORE: Deutsche Bank to cut 18,000 jobs and quit stock trading
The figures indicate a continuing decline in financial hires in the British capital. Morgan McKinley said the number of new quarterly roles has collapsed from more than 24,000 in early 2017 to around 7,300.
The decline in finance jobs in London has coincided with a similar, though less pronounced, drop in the number of people seeing jobs in financial services.
READ MORE: Deutsche Bank plans to cut up to 20,000 jobs
There were 22% fewer people looking to change jobs in the city compared to the first quarter of the year, Morgan McKinley said. The number of job seekers fell by 19% compared to the second quarter of 2018.
Morgan McKinley called the falls “dramatic.” Hakan Enver, managing director of Morgan McKinley UK, blamed the crisis on Brexit.
“Large banking organizations as well as those in the broader financial services space, have refrained from investing in talent due to lack of clarity,” Enver said, adding that there were “countless projects and plans pending “.
“If we have a no-deal Brexit, these projects and all the jobs they would have generated will go from suspension to cancellation,” he said. âAnyone who takes up residence in Downing Street should remember that financial services are the biggest contributor to the UK tax base.
âIf these jobs continue to be treated as collateral damage, someone else will eventually have to foot the bill for government spending.
READ MORE: Societe Generale cuts 1,600 investment banking jobs in London, Paris and New York
The drop in new finance jobs also comes as most of the big banks focus on downsizing in response to tough market conditions. Societe Generale announced in early April its intention to cut 1,600 jobs, including some in London. Around the same time, the Japanese bank Nomura announced plans to cut 100 jobs in Europe. HSBC is also cutting hundreds of investment banking jobs.
The investment bank’s revenue fell 23% in the first six months of 2019, according to data provider Refinitiv. Equity income fell 31%. Bloomberg said in a recent article that the atmosphere in the City of London âPerhaps the darkest since the financial crisis. “
Separately, another survey showed a slowdown in hiring intentions across the UK. The employment index for accounting firm BDO fell for the second consecutive month in June, after six years of growth.
Peter Hemington, partner at BDO, also blamed Brexit for the slowdown in hiring intentions across the country.
“The glory years of rising UK employment figures may be coming to an end,” he said. âWhile the numbers remain in positive territory, growth is slowing. The job market has resisted the potential effects of Brexit, but months of negative sentiment have finally taken their toll. “
Oscar Williams-Grut covers banking, fintech and finance for Yahoo Finance UK. Follow him on Twitter at @OscarWGrut.