London’s financial job vacancies up 19pc in April, says recruiter report
LONDON – Job vacancies at London’s financial-services companies climbed 19 per cent in April as tougher regulation of banks spurred hiring in compliance and anti-money laundering, according to a report by recruitment firm Astbury Marsden.
New vacancies in the City and Canary Wharf financial districts rose to 2,600 in April from 2,190 in March, the report said. It followed a fall in March when the number of jobs dipped 15 per cent from February.
“What happened in March shows how volatile sentiment is in the market at the moment, so any unpleasant surprises on the economic and regulatory fronts could have a rapid chilling effect,” said Mark Cameron, chief operating officer of Astbury Marsden. “We don’t expect to see more aggressive hiring resume until banks have clear plans as to which areas they are going to target for growth.”
Firms in the City, deemed as the world’s number one financial centre, have been hiring to improve compliance and reduce risk amid regulatory scrutiny following scandals including interest-rate rigging and money laundering. Banks, insurers and asset managers may add 4,000 jobs in the first half of the year, ending three consecutive quarters of cuts, the Confederation of British Industry said in April.
“Regulation is still driving recruitment in the City, as banks focus on trimming their businesses back to their most profitable areas in order to manage new capital requirements,” said Astbury Marsden.
European corporate and investment banks face a reduction in profitability from increased taxation, compensation restrictions and regulatory burdens, according to a report by Oliver Wyman and Morgan Stanley in April.
European lenders including Barclays, Deutsche Bank and UBS have trimmed costs by cutting jobs and selling assets to meet tougher capital rules under Basel III international standards.