Recruitment outlook for the UK Financial Services Sector
The UK financial services sector is facing significant changes and challenges in 2023, and recruiters in this space must keep up with the latest trends to stay competitive. In this blog post, APSCo has examined the latest recruitment trends in the financial services sector and what recruiters can expect in terms of vacancies and salaries in the coming weeks and months.
The current state of play
Since the pandemic, the UK economy has been recovering gradually, despite further international shocks and domestic political turmoil. Growth is expected to continue in 2023 and Britain’s financial services sector is an essential part of the economy, accounting for over 8% of the country's GDP. The sector employs over 1 million people, and despite all the uncertainties, the sector has remained robust.
Salary trends
According to industry experts, the average salary in the financial services sector in the UK is estimated at around £40,000, rising to around £55,000 in London. Given inflationary pressures and demand for specialist skills, the average salary is expected to increase slightly in 2023. However, recruiters may find it challenging to negotiate higher salaries for their candidates, given the cost pressures many firms are facing and especially in light of comments by Huw Pill, chief economist at the Bank of England.
Impact of the Spring Budget
Chancellor Jeremy Hunt’s Spring Budget will have some significant implications for the financial services sector. Changes to capital allowances, pensions and the announcement of new investment zones should all support the growth of financial services firms in the UK.
Skills shortages persist
The financial services sector in the UK is facing a skills shortage, with a significant number of firms struggling to find suitable candidates for their vacancies. According to the Office for National Statistics, the skills shortage in the financial services sector has been steadily increasing since 2020. This shortage is likely to continue in 2023, making it challenging for recruiters to find the right candidates for their clients.
To address the skills shortage in the financial services sector, APSCo has made a series of recommendations to the government. These include investing in skills development programs for the sector and developing a better understanding of the skills gaps. APSCo is also advocating for a more flexible approach to immigration policy to allow for the recruitment of overseas talent where necessary.
Conclusion
The sector is facing a skills shortage, and the most successful recruiters are adopting a proactive approach to attract and retain top talent. APSCo members in the financial services sector are able to keep up with the latest trends and developments to stay competitive. APSCo will circulate the latest market data in May. If you’re not a member and would like the opportunity to see the data please get in touch using the form below.