Finance job vacancies fall 10% in England in wake of Brexit uncertainty

Financial jobs in England have fallen 10% since the country voted to leave the European Union amid concerns over passporting rights and access to the single market post-Brexit, a think-tank said on Friday.

There was a 10% drop in job postings for the financial sector in July and August in comparison to May and June, the Institute of Public Policy Research (IPPR) said.

Jobs postings for the finance sector as a percentage of the whole economy decreased across every region in England in July and August, which is the first time in four years, following the referendum vote in June.

London, which has had its status as a financial hub questioned after the Brexit vote, experienced a 13.6% fall in financial jobs advertised, including for chief executives, senior officials, managers, and administrative positions.

Other regions with double-figure drops in financial jobs postings were the North East with 12.8%, North West with 11.4% and Yorkshire and Humber with 11.2%.

Official job figures have a time lag of at least six weeks, but IPPR’s research using technology from Burning Glass, the job market analytics firm, used live postings which provided an immediate picture of trends.

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 well-being of our economy.

She said the government should remove doubt over Brexit and prioritise passporting rights, which enables financial intuitions to conduct business easier across the EU through a single license rather than many, and access to the single market in negotiations with the trading block.

Theresa May has refused to say whether the country will remain in the single market and if the City will continue to have passporting rights when she does begin divorce proceedings.

On Tuesday, Andrew Tyrie MP, the chair of the Treasury select committee said the amount of “business put at risk could be significant” if the UK left the single market.

While the Financial Conduct Authority said 5,476 British companies hold 336,421 passports to access the EU single market, and 8,008 European companies use 23, 532 passports to trade with Britain.