London, London’s financial services hiring edges up amid AI impact and Budget caution

Shoppers of talent and jobseekers are watching closely as London’s employment market shows surprising resilience. New figures from Morgan McKinley reveal modest quarterly gains but a stronger 9% year-on-year rise in vacancies, signalling opportunities across fintech, senior roles and specialist tech even as AI and budget uncertainty reshape hiring.

• Quarterly momentum: Job vacancies in London’s financial services rose 2% in Q3 2025 versus Q2, reflecting a rebound after a summer dip.
• Year-on-year strength: Vacancies are up 9% compared with Q3 2024, a clear sign the market is growing, not contracting.
• Hot sectors: FinTech leads the charge with over 6,400 roles posted year-to-date, driven by AI commercialisation and a five-year funding cycle.
• Changing mix: Junior and administrative roles are being near‑shored or automated, while demand grows for senior, strategic and tech leadership positions.
• Hiring caution: Many employers are delaying decisions ahead of the Autumn Budget, so opportunities exist but timelines may stretch.

Why a 2% quarterly rise matters more than it first looks

A 2% bump between Q2 and Q3 might sound modest, but context gives it weight. After a sharp hiring pause in Q2 — partly down to uncertainty over possible US tariffs and the usual summer slowdown — Q3’s rise shows firms are resuming postponed plans. That catch-up effect often leads to a concentrated burst of roles coming to market, which is exactly what recruiters saw this quarter. It smells of cautious optimism; employers are hiring again, just more selectively and strategically.

That means candidates should keep searching but expect longer decision cycles. For hiring managers, it’s a reminder that paused roles often reappear, sometimes with altered briefs as businesses reassess priorities.

What the 9% year‑on‑year increase tells you about London’s trajectory

A near double-digit yearly rise isn’t a seasonal blip — it suggests an underlying expansion. London remains the centre for senior finance and digital roles, and the 9% growth shows the city’s labour market is absorbing new demand even as automation reshapes entry-level work. In plain terms: there are more jobs, and many of them pay for strategic and technical skills rather than routine admin.

If you’re mid-career or senior, this is encouraging. If you’re early in your career, it signals a need to upskill or consider roles in regional hubs where entry-level positions are being relocated.

Where the demand is concentrated and what that feels like

FinTech is the standout performer — more than 6,400 roles posted year-to-date, driven by funding cycles and the race to commercialise AI platforms. You can feel the energy in startup hiring and product teams, where roles are fast-paced and innovation-led. Meanwhile, traditional banking and consumer finance see fewer vacancies overall, but operations and compliance roles are rising as firms grapple with complexity from automation, tariffs and regulation.

So if you’re into cutting-edge tech, payments or AI product roles, London’s market is warm. If you specialise in consumer retail finance, expect more selective hiring with a focus on cost efficiency and regulatory skillsets.

How automation and near‑shoring are rewriting entry-level hiring

Structural change is reshaping the bottom of the talent pyramid. Many junior administrative tasks are being automated or centralised in hubs like Belfast and Glasgow, which slows graduate hiring in London. That’s a mixed picture: it reduces local entry roles, but it also creates high-value openings in oversight, implementation and technology management.

Practical takeaway: graduates and early-career professionals should prioritise digital skills, data literacy and experience with automation tools. Employers will reward candidates who can demonstrate how they add value beyond routine tasks.

The policy and investment backdrop — why the Autumn Budget and US tech deals matter

Hiring patterns aren’t happening in a vacuum. Employers are watching the UK Autumn Budget closely; many are delaying hiring decisions until fiscal direction is clearer. Meanwhile, the £150 billion US–UK Tech Prosperity Deal promises major US investment into the UK digital economy, which should funnel capital and talent into London over the medium term. That combination means short-term caution but medium-term upside, particularly for tech and digital roles.

In other words, don’t assume a hiring freeze — think of it as a pause button. Firms are assessing costs and incentives, and the next budget could quickly change tone.

What jobseekers and hiring managers should do next

If you’re job hunting, double down on higher-value skills that firms are actually hiring for: AI strategy, IT management, audit, tax and product leadership. Tailor applications to demonstrate impact and strategic thinking rather than routine capability. Be patient with timelines and use the pause to upskill or network.

If you’re hiring, be clear about which roles must remain in London (senior strategy, client-facing leadership) and which can be centralised or near‑shored. That clarity will help you move faster when the market swings in your favour.

Ready to make your next move or refine hiring plans? Check current role listings and briefings from recruiters like Morgan McKinley to see today’s market in real time.