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....
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