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Challenges in London’s economy as recruitment slows

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June stats reveal lowest total vacancies this year

According to recent data from the Association of Professional Staffing Companies (APSCo), London’s recruitment activity has dropped notably. The data was provided by business intelligence specialist, Vacancysoft and revealed that June saw the lowest total of vacancies this year.

The data also revealed that after recruitment activity peaked in March, volumes have been gradually subsiding. Following reports of vacancies reaching record-breaking figures, top candidates have many job options to choose from. Some firms have simply been unable to fill their vacancies and are removing them from job boards.

Traditionally, the London economy has been reliant on Financial Services. However, with the current cost of living crisis impacting consumer spending, corporate finance is slowing down, and this industry is now falling behind Technology.

Technology companies are currently out recruiting all other sectors. Still, there are concerns that the bullish tech market may be coming to an end, with Meta reporting its first drop in advertising revenues in 18 years and the crypto market facing new lows. In addition, tech companies are laying off workers at an unprecedented rate. In just the last month, redundancies were announced by Klarna (10%), Freetrade (15%), and Hopin (30%).

The Banking sector, however, has seen the biggest growth in vacancies in 2022 compared to 2021, up 46%. So far, the fastest growing area in 2022 has been in specialist Banking roles across front and middle office, increasing by 42%. With the UK moving into a post-EU future, risk and compliance are becoming the key areas that Banks must recruit for.

Ann Swain, CEO of APSCo, commented: “While talk of the pandemic has certainly simmered, London’s economy has far from recovered. Admittedly, vacancies in the capital have shown promising signs of growth this year, however, the recent decline should be cause for concern in the current market, with talks of a potential recession in the pipeline. The UK’s post-Covid economy has been hit with employment strikes, skills shortages, Government uncertainty and a cost-of-living crisis all of which have already started to negatively impact London’s recruitment and redundancy rates.

Stability is crucial as we continue to navigate such an ambiguous market. As the trade body for the professional recruitment sector, we believe that there is more to be done to make the UK’s employment sector competitive on a global scale and redeem the capital’s status as Europe’s leading economic powerhouse.”



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