Key Takeaways
- Demand for workers in AI, regulation, data reporting, and other specialist skills drove vacancies in Britain’s financial sector up 12% in 2025.
- The increase in vacancies was driven by companies seeking to keep up in a technology arms race, despite a slowdown in the fourth quarter due to market volatility and government budget uncertainty.
- Software and computer services now account for over 16% of vacancies, surpassing traditional roles such as investment management and banking.
- Clerical and administrative positions fell 16%, and broking roles fell 20% over the year, due to AI and automation of services.
Introduction to the Financial Sector
The financial sector in Britain has seen a significant increase in vacancies, with a 12% rise in 2025, according to recruiting firm Morgan McKinley. This growth is attributed to the increasing demand for specialist skills in areas such as AI, regulation, and data reporting. As companies strive to stay competitive in a rapidly changing technological landscape, they are seeking to hire professionals with expertise in these areas. As Mark Astbury, director at Morgan McKinley, noted, "Software and computer services now account for over 16% of vacancies, above traditional roles such as investment management and banking which accounted for 15% of total vacancies each last year."
The Rise of Technology in Finance
The rise of technology in the financial sector is driving the demand for skilled workers. As Astbury explained, companies are engaging in a "technology arms race," where they must adapt to new technologies to remain competitive. This has led to an increase in vacancies for roles such as software developers, data analysts, and AI specialists. The data from Morgan McKinley’s London Employment Monitor shows that software and computer services now account for a significant proportion of vacancies, surpassing traditional roles such as investment management and banking. As the report stated, "The year-on-year increase happened despite a slowdown in the fourth quarter, as volatility in global markets and uncertainty about the government’s November budget prompted caution in hiring managers."
The Impact of Automation on Traditional Roles
The increasing use of automation and AI in the financial sector is also having an impact on traditional roles. According to the data, clerical and administrative positions fell 16%, and broking roles fell 20% over the year. This is due to the automation of services, which has reduced the demand for staff in these functions. As Astbury noted, "AI and automation of services reduced the demand for staff in these functions." This trend is likely to continue, as companies seek to streamline their operations and reduce costs.
Outlook for the Financial Sector
Despite the slowdown in the fourth quarter, the outlook for the financial sector remains positive. Astbury predicted that the robust hiring should continue into the first quarter of this year, driven by the low unemployment rate of 5% and stable inflation of 3.2%. As he stated, "The robust hiring should continue into the first quarter of this year, as unemployment remained relatively low at 5% and inflation stable at 3.2%." This suggests that companies will continue to invest in hiring skilled workers, particularly in areas such as AI, regulation, and data reporting.
Conclusion
In conclusion, the financial sector in Britain has seen a significant increase in vacancies, driven by the demand for specialist skills in areas such as AI, regulation, and data reporting. The rise of technology in finance is driving this demand, and companies are engaging in a "technology arms race" to stay competitive. While automation and AI are having an impact on traditional roles, the outlook for the financial sector remains positive, with robust hiring expected to continue into the first quarter of this year. As the report stated, "Sign up here" to stay up-to-date with the latest developments in the financial sector.
https://www.reuters.com/sustainability/boards-policy-regulation/demand-ai-tech-experts-pushes-uk-financial-sector-vacancies-up-12-recruiter-says-2026-01-12/
