Financialservices and fintech job openings in London climbed 14% compared to the sameperiod last year, according to new data from recruitment firm Morgan McKinley,though hiring levels remain below their 2023 highs.London Finance Jobs Rise14% as Fintech Drives Hiring RecoveryThe firm'slatest employment monitor found job vacancies rose 3% in the second quartercompared to the first quarter of 2025. The figures suggest London's financesector continues recovering from last year's downturn, but the pace remainsmeasured.Fintechcompanies are leading the charge, with compliance and risk roles seeingparticularly strong demand. Morgan McKinley projects Greater London will see a72% jump in fintech hiring throughout 2025, making it the UK's fastest-growingsector for recruitment."Thelatest figures from our London Employment Monitor points to a continued reboundin London's financial services hiring," said Mark Astbury, director atMorgan McKinley. "Following a 12% seasonal bounce in Q1, we've seen afurther 3% increase this quarter and a 14% year-on-year uplift."What’s Holding Back aStronger Jump?But Astburycautioned that several factors are holding back stronger growth. Global marketvolatility, Middle East tensions, and uncertainty around US trade policies havedampened momentum since the year began with renewed optimism.The UKgovernment's decision to raise employer National Insurance contributions hasalso weighed on business confidence, according to the recruitment firm. Manycompanies remain cautious about expanding their workforce amid ongoingcost-cutting pressures and economic uncertainty.Contract Market Cools asFirms Favor Permanent StaffWhilepermanent hiring held steady with a 3% quarterly increase, the contract markethas softened since Easter. Companies are prioritizing stable, full-time teamsover temporary coverage as they focus on long-term efficiency rather thanshort-term headcount growth."Fromwhat I'm seeing on the ground, interim recruitment has been subdued with firmsprioritising stable, permanent teams in core business areas over short-termcover," Astbury said. Artificial intelligence and automation arepushing companies to streamline operations and reduce their reliance ontraditional entry-level positions. Investment is increasingly flowing towardtechnology upgrades and operational improvements.Industry AwaitsChancellor's SpeechThe financesector is closely watching Chancellor's upcoming Mansion House speech on July15 for concrete measures that could boost business confidence and hiringdemand. Industry observers expect the speech to focus on economic growth andthe future of the City of London.Potentialinitiatives could include unlocking pension capital for investment in UKbusinesses and improving financial services competitiveness, though theindustry wants to see specific, actionable policies rather than broadambitions."Whilethese ambitions are welcome, the industry is hoping for clear, actionablemeasures that translate into real-world hiring and business confidence,"Astbury said. "Despite ongoing headwinds, employers that remain agile anddeliberate in their planning will be best placed to adapt, navigate and grow inthis evolving market."The datacomes from Morgan McKinley's quarterly London Employment Monitor, which tracksjob vacancy trends across the capital's financial services sector.This article was written by Damian Chmiel at www.financemagnates.com.