Follow Us

Follow us on Twitter  Follow us on LinkedIn

21 January 2022

Bloomberg: London Bankers, Your Jobs and Bonuses Look Safe — For Now

New finance jobs created elsewhere in Europe, rather than transfers from London, threaten to erode the City’s status.

Britain’s decision to leave the European Union has imperiled the City’s status as the region’s financial center. So far, the loss of jobs has been more of a dribble than an exodus. But the current hiatus masks a longer-term threat, as firms choosing where to house new positions expand elsewhere. 

At the moment, British banking is thriving. U.K. financial-services firms saw three-month business volumes grow at their fastest pace since June 2017 in the final quarter of last year, according to a Confederation of British Industry survey of more than 100 firms released Thursday. Profitability accelerated at its best rate for five years.

Even more heartening for British bankers is how firms rank their priorities for the coming year. Retaining talent is cited as the most important business necessity by 56% of respondents, beating the 27% who see recruiting for existing positions as essential and dwarfing the 2% seeking to limit their expenditure on employees. Salaries and bonuses look safe for U.K. financial staff.

Job Security

U.K. financial services firms rank staff retention as their key priority in the coming year, with curbing compensation coming in last place

Leaving the EU has hurt the U.K. finance industry less than expected. EY’s most recent Brexit Tracker revised its estimate for the number of jobs relocating from London to 7,400, down from 7,600 a year earlier. 

But it may not last. EY reckons the pandemic has made firms temporarily less aggressive in moving staff. “Delayed moves should pick up over the coming year, not least due to ongoing pressure from EU regulators,” said Omar Ali, EY’s head of financial services....

more at Bloomberg

© Bloomberg

< Next Previous >
 Hover over the blue highlighted text to view the acronym meaning
Hover over these icons for more information

Add new comment