The number of city bankers looking for new jobs plummeted in the last three months of last year as the world’s largest investment banks began to cut back and job vacancies dwindled.
According to recruiter Morgan McKinley’s London Employment Monitor, the number of financial services professionals venturing into the job market fell by 23% in the fourth quarter of 2022.
“Professionals have become more cautious, waiting for bonuses before considering a move,” said Hakan Enver, Managing Director at Morgan McKinley UK. “Nevertheless, many large financial institutions and technology companies have announced job cuts, which could mean a larger pool of candidates to choose from.”
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Major investment banks began downsizing in the last three months of 2022 for the first time since the pandemic began.
Goldman Sachs reinstated its annual job cuts — about 1-3% of the workforce — in early October, while Morgan Stanley also shed 1,600 jobs in December. Barclays, Citigroup and Deutsche Bank also cut dealmakers, while Credit Suisse cut 2,700 jobs in the fourth quarter.
Total jobs in the city fell 8% in the final three months of 2022, which Morgan McKinley attributed to “troubled economic conditions and the holiday season.” The average salary increase when changing jobs was 21%.
However, job cuts picked up speed in 2023. Goldman carried out another 3,200 layoffs in January, while fund management giant BlackRock will cut 500 jobs and Japanese bank Nomura has downsized its dealmaking team.
“We believe the market will stabilize in 2023 as companies continue to struggle to find good staff,” Enver said.
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