TheCityUK’s October 2014 London Employment Survey, released today, reveals employment in financial and related professional services in London reached a record high of 703,900 in June 2014– 11% above the low seen in 2010 and nearly 2% above the pre-crisis peak in 2007.
Optimism among large London-based firms about employment prospects for the second half of 2014 is also up.
Between January and June 2014, net headcount across the industry increased by 11,300, largely due to an expansion in professional services jobs, which were up 3.1%. While accounting and management consulting firms were the biggest contributors to employment growth in the capital, employment in financial services also saw an increase after experiencing a 5% decline in 2013.
Chris Cummings, Chief Executive, TheCityUK, said, “The record employment level in London’s financial and related professional services industry is another strong proof point of the continued economic recovery. Firms know that by investing in London they are able to tap into a global talent hub. It also sends a very clear message that London and the UK remain genuinely attractive places to do business. Firms are continuing to invest in order to secure commercial success.”
According to TheCityUK’s Survey, a further 1.5% increase in employment is forecast across the second half of 2014. This would bring headcount up to 714,500 and represent a 3.1% rise in total financial and related professional services employment over the year, up from 2.4% in 2013.
“After years of restructuring, there are clear signs of businesses investing across the capital. The major professional services firms all have large operations in London and the jobs boom they are enjoying is positive for graduates and school leavers looking to build their careers in Europe’s financial capital,” said Mr Cummings.
“Although cost-cutting across investment banks has supressed overall hiring in financial services in London, there was a healthy rise in fund management jobs over the first half of the year which is a positive indicator that there is continued momentum in the sector. It is also a clear sign of the success of the Financial Services Trade and Investment Board’s (FSTIB) investment Management Strategy.”
As the UK gears up to the 2015 general election, TheCityUK is calling on policymakers to ensure the continued competitiveness of London’s financial and related professional services industry, which is an asset for Europe as well as the UK and a major driver of long-term economic growth and job creation.
“These employment figures send a clear message to overseas firms that the UK remains a world-leading place to do business. There are a range of measures that can help sustain this and ensure the UK continues to attract foreign direct investment including a competitive tax regime; positive regulatory environment; easy access to home-grown talent as well as the ability to bring in employees from other parts of the world; investment in digital and physical infrastructure; and of course the ongoing commitment from Government to keep the UK open for business,” concluded Mr Cummings.