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Slump in finance sector recruitment in aftermath of Brexit vote, reveals IPPR

New research by IPPR, based on live job postings, shows a 10% drop in postings in the financial sector in July and August compared to May and June.

Postings for the finance sector as a percentage of the whole economy decreased across every region in England in the two months after the referendum vote. This is striking as it is the only year in the past four where this trend has occurred.

In London there was a 13.6% downturn in jobs advertised in the finance sector, including for chief executives and senior officials, managers, as well as administrative occupations.

Whereas official job figures have a time lag of at least six weeks, IPPR’s research with Burning Glass technology uses live postings that can provide a more immediate picture of trends in particular industries or occupations.

IPPR is renewing its call for the government to reduce the economic damage of uncertainty over Brexit by saying it will prioritise passporting rights and access to the single market in negotiations.

Clare McNeil, IPPR associate director for work and families, said, “This new data shows the immediate impact that the vote to leave the European Union appears to be having on the finance sector.

“As one of our largest sectors, the financial sector is vital to the wider wellbeing of our economy.

“That is why the Prime Minister needs to end doubts around whether the government will pursue access to the single market and passporting rights as high priorities in the Brexit negotiations.”

In terms of the broader job market beyond the financial services sector, employer recruitment patterns in the two months before and after the referendum vote were in line with previous trends.

The percentage drop in postings in the finance sector occurred across England:

Region - Percentage drop in postings

East Midlands 4.8%
East of England 11.0%
Greater London 13.6%
North East 12.8%
North West 11.4%
South East 4.8%
South West 3.6%
West Midlands 6.2%
Yorkshire and the Humber 11.2%

England total 10.1%

Picture courtesy of Pixabay

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