London suffers big drop in hiring by FM firms as Brexit looms
Asset managers in the UK have cut back considerably on new appointments as they look to shore up their European offices ahead of Britain’s withdrawal from the EU in March next year.
According to data from LinkedIn and appearing in reports this morning, Paris, Luxembourg, Frankfurt and Dublin are the European financial centres benefiting most from the drop in recruitment in London.
LinkedIn’s analysis shows that, over the last quarter, there were 1,867 asset management-related postings listed in London, 339 in Paris and 278 in Luxembourg. The professional networking company said London-based investment management jobs posted on LinkedIn in 1Q2018 was just under half the number seen in 1Q2015.
Britain’s asset management industry is worth around £8tn, yet is seen as one of the more vulnerable sectors as the country prepares to leave the EU. Around £2.6tn of the assets the sector controls are based overseas.
However most observers think London will remain as Europe’s fund management capital despite the disruptive forces of Brexit.
The UK finance minister, Philip Hammond, said on Friday that most asset management firms had already effectively put into action their post-Brexit strategies. “We have avoided what could possibly have been a haemorrhage of jobs,” Hammond said of the financial sector’s prospects.