Financial
services and fintech job openings in London climbed 14% compared to the same
period last year, according to new data from recruitment firm Morgan McKinley,
though hiring levels remain below their 2023 highs.

London Finance Jobs Rise
14% as Fintech Drives Hiring Recovery

The firm’s
latest employment monitor found job vacancies rose 3% in the second quarter
compared to the first quarter of 2025. The figures suggest London’s finance
sector continues recovering from last year’s downturn, but the pace remains
measured.

Fintech
companies are leading the charge, with compliance and risk roles seeing
particularly strong demand. Morgan McKinley projects Greater London will see a
72% jump in fintech hiring throughout 2025, making it the UK’s fastest-growing
sector for recruitment.

“The
latest figures from our London Employment Monitor points to a continued rebound
in London’s financial services hiring,” said Mark Astbury, director at
Morgan McKinley. “Following a 12% seasonal bounce in Q1, we’ve seen a
further 3% increase this quarter and a 14% year-on-year uplift.”

What’s Holding Back a
Stronger Jump?

But Astbury
cautioned that several factors are holding back stronger growth. Global market
volatility , Middle East tensions, and uncertainty around US trade policies have
dampened momentum since the year began with renewed optimism.

The UK
government’s decision to raise employer National Insurance contributions has
also weighed on business confidence, according to the recruitment firm. Many
companies remain cautious about expanding their workforce amid ongoing
cost-cutting pressures and economic uncertainty.

Contract Market Cools as
Firms Favor Permanent Staff

While
permanent hiring held steady with a 3% quarterly increase, the contract market
has softened since Easter. Companies are prioritizing stable, full-time teams
over temporary coverage as they focus on long-term efficiency rather than
short-term headcount growth.

“From
what I’m seeing on the ground, interim recruitment has been subdued with firms
prioritising stable, permanent teams in core business areas over short-term
cover,” Astbury said.

Artificial intelligence and automation are
pushing companies to streamline operations and reduce their reliance on
traditional entry-level positions. Investment is increasingly flowing toward
technology upgrades and operational improvements.

Industry Awaits
Chancellor’s Speech

The finance
sector is closely watching Chancellor’s upcoming Mansion House speech on July
15 for concrete measures that could boost business confidence and hiring
demand. Industry observers expect the speech to focus on economic growth and
the future of the City of London.

Potential
initiatives could include unlocking pension capital for investment in UK
businesses and improving financial services competitiveness, though the
industry wants to see specific, actionable policies rather than broad
ambitions.

“While
these ambitions are welcome, the industry is hoping for clear, actionable
measures that translate into real-world hiring and business confidence,”
Astbury said. “Despite ongoing headwinds, employers that remain agile and
deliberate in their planning will be best placed to adapt, navigate and grow in
this evolving market.”

The data
comes from Morgan McKinley’s quarterly London Employment Monitor, which tracks
job vacancy trends across the capital’s financial services sector.