Professional vacancies in London’s finance market fell sharply through the third quarter, as employers became more selective about the roles they would approve, according to Morgan McKinley’s latest London Employment Monitor.
The recruiter recorded 4,368 professional vacancies across Q3 2026: down 6% on the previous quarter and 11% year on year. The slowdown sharpened as the quarter progressed, with monthly vacancies falling from 1,719 in July to 1,200 in September.
A more targeted market
Morgan McKinley says the figures point to selective hiring rather than a complete freeze. Employers are prioritising roles linked to immediate skills gaps, productivity and growth, while applying more scrutiny to the business case for each hire.
“The message from Q3 is therefore not that London has stopped hiring, but that the threshold for hiring has become higher.”
— Mark Astbury, Director, Morgan McKinley
Astbury said there were still pockets of demand in IT, tax, employment law, restructuring and engineering consultancy. However, uncertainty around employment costs and the October Budget was contributing to caution.
What it means for recruiters
For recruitment teams, the findings reinforce the importance of specialist talent pipelines, clear skills evidence and a strong connection between hiring plans and business outcomes. In a more selective market, roles that can demonstrate an immediate contribution to productivity, compliance or transformation are likely to be easier to justify than discretionary hiring.
Source: Morgan McKinley, London Employment Monitor. Image: editorial illustration created for Onrec.
