The City of London’s financial services sector experienced a modest hiring rebound in the first quarter of 2025, according to Morgan McKinley’s latest London Employment Monitor.
However, the early-year optimism is being tested by renewed global uncertainty and the escalating trade tensions triggered by President Trump’s return to office.
The report shows a 12% increase in job vacancies in Q1 compared to the previous quarter—largely reflecting the industry’s seasonal bounce as firms resume hiring activity following year-end budget freezes and strategic planning cycles. Yet despite this quarterly uptick, job availability is still down 11% year-on-year, underlining the structural challenges gripping the sector.
Mark Astbury, Director at Morgan McKinley, warned that wider macroeconomic conditions continue to erode confidence.
“The quarter’s seasonal rebound is welcome, but it was quickly overshadowed by geopolitical disruptions, particularly the reintroduction of trade tariffs under President Trump,” he said. “Protectionist rhetoric, market volatility, and falling investor confidence are creating a highly risk-averse environment across the City.”
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