New data has shown that City job opportunities are “plummeting”, and optimism among the UK’s finance bosses has decreased to a two-year low as Rachel Reeves is cricised over her policies.
According to a survey by recruiter Morgan McKinley, the number of financial services vacancies fell to its lowest level since 2020 in the final three months of 2024.
This means that City openings are at their lowest level since the COVID-19 pandemic shut down the economy, The Telegraph reports.
Chief financial officers have also been surveyed by Deloitte.
The research found that business confidence had decreased to its lowest level since early 2023, and hiring plans among this group have slumped at the highest rate since the pandemic.
Morgan McKinley and Deloitte have claimed that Rachel Reeves’s October 30 Budget was behind the situation, as higher employment costs, contributed towards by an increase in National Insurance (NI) contributions, make companies more reluctant to hire.
Ian Stewart, chief economist at Deloitte, said: “With cost control to the fore in the wake of the Budget, CFOs have trimmed expectations for corporate investment, discretionary spending and hiring in the next 12 months.”
Mark Astbury at Morgan McKinley said: “The financial services sector in London suffered a contraction in 2024, with job availability plummeting.
“These stark figures paint a sobering picture of an industry grappling with mounting challenges, including economic volatility, geopolitical uncertainty, strategic overhauls, and the rapid pace of technological disruption.”
He added: “The Budget’s measures, such as the planned increase in employer National Insurance contributions, only exacerbate the strain on businesses, forcing many to implement hiring freezes or abandon growth plans altogether.”
Mr Griffith said: “Survey after survey show that the Labour Budget has damaged business confidence and our economy.
“The Chancellor has made Britain more vulnerable because of her decisions.
“This is a crisis made in Downing Street and, sadly, it could get much worse for families across the country. Labour must set out how they are going to turn this around.”