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City financial services job market index: Aug-Sept 2022

City financial services job market index: Aug-Sept 2022

Filter tag: Change Management and Executive Outplacement, Leadership Capability, Strategies for Growth

Executive Summary

There is no silver bullet when it comes to measuring demand in the U.K. financial services job market.

Over the years we have looked at everything from indices from recruitment agencies, aggregated job board data as well as government/ONS data. All of them are useful indicators but fail to offer an accurate reflection of what’s happening across Financial Services as well as individual and significant sub-sectors.

The City Career LAB & Rialto job market index captures data directly from corporate careers sites as a way of measuring jobs activity – specifically demand. It’s not perfect*, but is perhaps the most accurate indicator of hiring demand in the U.K. financial services jobs market.

Each month we collect and analyse data from a broad and diverse basket of handpicked employers that represent a particular sub-sector of Financial Services in the U.K.

The results which include all permanent and fixed term contract positions across all functions of the chosen organisations will be published on our joint websites and Linkedin – to show and explain the direction of the hiring market(s) from month to month.

 

Key take-outs including analysis by sub sector below:

  • What started as a levelling out of activity in early summer has turned into a steady decline with two months of relatively significant drops. If these were GDP figures we’d technically be in a recession.
  • The Year-on-Year gap has closed to the extent that current job postings for September 2022 are almost level with September last year, coming after what has seemed like an inexorable rise for the index since the start of 2021.
  • As usual, not every area of UK Financial Services is heading in the same direction with Wealth & Private Banking rising by 9% month on month and Investment Management by 3%.
  • However, every other sub sector has experienced significant drops with Fintech leading the way with a drop of 24%, followed by Information Services(11%), Banking & Markets (10%) and Insurance (8%)
  • As with any story of doom and gloom, it’s important to maintain some perspective, and it’s fair to say that there is still a healthy jobs market – just not as healthy as it has been.

As a reminder – the Job Market Index is intended to be the most accurate read on hiring demand in the UK financial services sector. Click on link in comments for more detail about month-on-month changes across the sub sectors, the methodology used and sub sector definitions.

 

The indicators show;

Banking & Markets: Corporate & Investment Banking, Markets, Securities Services (excl. Consumer/retail) -10%
Investment management: Asset Management, Alternatives +3%
Insurance: General, Life, Reinsurance, Broking -8%
Wealth & Private Banking +9%
Fintech: Banking, Lending, Payments, Insurtech, Crowdfunding -24%
Information Services: Data Providers, Ratings Agencies, Risk Analytics -11%

 

Author: Dan Whitehead, Founder/Career Coach City Career Lab & Associate Director Rialto Consultancy Ltd supported by Richard Chiumento, Director, Rialto Consultancy Ltd

*Lack of perfection is based on the fact that it typically won’t pick up the majority of the Senior Director/ED or MD positions as not many of these get posted in the first place. However, it will pick up the majority of positions at other levels, which is 90% of all open roles – thereby proving a good indication of hiring demand for that sub sector more generally.

 There is some inevitable ‘contamination’ of the data where firms are operating across more than one area but I am confident that my choice of firms and the way I have collected the data will minimise the impact of this to less than 5%.

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