Financial job vacancies tumble after Brexit vote

According to research from the Institute for Public Policy Research (IPPR), there was an "uncharacteristic downturn" in the number of adverts for job vacancies across the UK's financial services sector, dropping by a tenth during July and August.

London was hit the hardest, with job openings for chief executives, managers and administrative roles within the financial sector tumbling by 13.6 per cent during these two months, compared to May and June.

The IPPR, which looked at job postings for the finance sector as a percentage of the whole economy, said the data was striking because it was the only year since 2012 where this trend had occurred, highlighting how detrimental the Brexit vote was for UK businesses. 

Before the referendum on the 23 June, HM Treasury predicted a vote to leave the EU would have a negative impact on the UK economy and on the employment rate.

The think tank said the decision by financial firms, such as banks, to put-off taking on more staff revolved around concerns over passporting rights and the UK’s single-market access.

IPPR said passporting rights should be retained, but the UK should be prepared to pay a higher fee to the EU in exchange for those rights.

"Uncertainty around the future of freedom of movement will also be of concern to employers" the report stated, adding any reform of the rules must allow free movement to safeguard sectors that are heavily reliant on EU migration.

Clare McNeil, IPPR associate director for work and families, said the financial sector - which is one of the UK's largest sectors - is vital to the well-being of the British economy.

She said the prime minister Theresa May needs to end doubts over whether the government will pursue access to the single market and passporting rights, adding this is a high priority in the Brexit negotiations.

The only uncharacteristic upturn in job postings within the finance sector was for legal professionals, with a 21 per cent rise in job vacancies.

However, excluding finance, other industries were found to be broadly in line with previous trends in the months before and after the Brexit vote.