UK elections spree causes 'upswing' in City hiring

Brexit dampens job seeker numbers

Mike Sheen
clock • 2 min read

The UK's General Elections in 2015 and 2017, and the 2016 referendum on EU membership all "defied expectation" and caused an increase in London employment, according to research from recruitment firm Morgan McKinley.

However. the impact was diminished in the most recent General Election, which saw a 3% boost to hiring, compared to spikes of 56% and 17% in 2015 and 2016 respectively.

Each election over the course of the last three years has resulted in an upswing in hiring, "albeit with a little less panache this time around," said Hakan Enver, Operations Director, Morgan McKinley Financial Services.

City banks warn of staff relocations after Brexit

Though noting there was a 3% increase in job availability in June, Morgan McKinley's research also found that the overall figure has fallen by 23% when compared to the same time last year.

There has also been a 49% decrease in the number of professionals seeking jobs compared to this time last year, tempered slightly by a 5% increase during June.

Morgan McKinley said the fall in those seeking work in London "underscores the dramatic shift in the City's workforce heralded by the vote to leave the EU" and that Brexit was also having an impact on employers' willingness to open new vacancies.

M&G chief Richards urges political parties to join forces for Brexit talks

"Our clients want to recruit aggressively, but one year into a post-Brexit world, they are still holding back," said Enver. "If it were not for the ongoing confusion surrounding the business climate, the jobs available numbers would be even higher."

Morgan McKinley also noted the importance of employers engaging with the "millennial" generation in response to Brexit and the growing need for digital skills.

IW Summer Podcast: What are the key issues for wealth managers after Brexit vote and BoE rate cut?

"Millennials are integral to the future of the British workforce. We have already alienated countless EU nationals, we cannot well afford to alienate a generation of creative and ambitious Britons, too," said Enver.

"It is not an easy predicament for the City, having to adapt to rapid shifts in technology while meeting the demands of the first generation of digital natives, and all in a post-Brexit climate.

"But failure to attract millennials and harness their skills will be a greater threat to the Square Mile's existence than all the regulatory hurdles Brussels can throw at us combined."

 

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