London is forecast to account for more than half of all UK banking vacancies in 2026, with the London banking jobs recovery running at 18 times the pace seen across the rest of the country, according to data compiled by recruitment firm Morgan McKinley. The figures point to a sharply uneven rebound, with the capital consolidating its grip on the sector while several other UK financial centres face a decline.
Overall, UK banking vacancies are set to rise by nine per cent in 2026. London, however, is expected to see postings climb by 18 per cent, compared with just one per cent across the remainder of the UK. The capital’s share of total banking vacancies is projected to reach 53 per cent, up from 49 per cent last year, according to Morgan McKinley’s analysis of career pages at major banks.
London banking jobs recovery leaves regional centres behind
The regional picture is considerably less encouraging. Glasgow is forecast to see banking vacancies fall by eight per cent in 2026, Belfast by ten per cent, and Edinburgh by two per cent, Morgan McKinley’s press releases show. Manchester is an exception: postings there are expected to rise 69 per cent relative to previous levels, making it the only major regional hub tracking anywhere near London’s trajectory.
The concentration of hiring in the capital reflects a broader pattern in which the largest banks are driving the recovery. JPMorgan Chase, Barclays and Citi together account for 23 per cent of all UK banking vacancies, according to Morgan McKinley. Barclays, which reported a profit of £6.1bn, increased its vacancies by 24 per cent year-on-year. JPMorgan Chase and Citi have also added postings. Lloyds Bank, by contrast, reduced its number of available positions.
Chris Lawton, UK senior managing director at Morgan McKinley, said demand was shifting towards commercial and technological roles while accountant vacancies weakened. The data was gathered by tracking postings directly on banks’ career pages, offering a more granular read of hiring intentions than aggregate vacancy surveys.
Budget uncertainty hangs over the sector
The hiring momentum arrives at a delicate moment for the sector. Speculation in Westminster centres on whether the Chancellor could increase a levy on banking profits as part of efforts to ease pressure on public finances. Economists at the Resolution Foundation have estimated the Chancellor’s fiscal headroom to have dropped to as low as £5bn, a figure that has added to unease among bond traders about the level of public sector debt.
The Chancellor may also face headwinds from slowing economic activity. Data from the Confederation of British Industry suggested that activity is expected to fall in the three months to December. Alpesh Paleja, deputy chief economist at the major industry group, said the outlook remained ‘subdued’ as cost pressures ‘remain strong’.
‘Uncertainty ahead of next month’s Budget is also holding back activity in some sectors,’ Paleja said. ‘Against the backdrop of renewed fiscal pressures, the Budget must draw a clear red line under any more rises in the cost of hiring, investing and doing business.’
For the banking sector, the immediate picture is more positive. Barclays and its peers have already posted strong profits this year, and the Morgan McKinley data suggests that hiring is following suit. Whether the Budget shifts the calculus for employers weighing up their headcount plans is the more pressing question for executives heading into the autumn.
