The finance job market in Q1

As the UK job market navigates change in 2025, finance, tech, and HR professionals face new opportunities and challenges. Kicking off our three-part series, March dives into the UK finance sector in Q1. Shifting economic dynamics, sector-specific trends, and regional differences shape hiring landscapes. Discover essential tips to stay competitive and succeed in this dynamic sector.

In April, we’ll spotlight the tech sector, unveiling trends and strategies for seizing opportunities in high-demand roles. Then, we’ll conclude with the HR market, exploring how professionals can adapt to a changing landscape.

This three-part series is your roadmap to success in the 2025 job market, offering advice, and insights that you can tailor to your career.

The UK finance job market

The job market in Q1 2025 reflects a mixed landscape. It’s influenced by:

1. economic conditions
2. sector-specific trends
3. regional disparities

Professional vacancies in the UK finance labour market saw a significant upswing in 2024, according to the report Year in Review 2024 from Morgan McKinley and Vacancysoft. The report reveals that London accounts for much of this growth, with a 7% rise in finance vacancies. This is compared to the UK’s overall 4% decline. 

In three core sectors, banking saw an 11.5% decrease (an improvement on the 38.2% 2023 decrease), while job vacancies in FinTech and accountancy grew.

If you're thinking of changing roles this year, here are the key trends that you need to know:

FinTech

FinTech is shaping up as one of the best areas in finance. In fact, ‘Year in Review 2024’ outlines how the FinTech sector saw a 44% year-on-year vacancy increase. Venture capital (VC)  and AI drove this.  The sector’s ongoing fragmentation has also led to the birth of new companies. FinTech is now a magnet for talent, especially in commercial roles. The FinTech sector continues to thrive in Q1, and it’s expected to continue into Q2.

Accountancy

Accountancy recruitment is a mixed bag. The accountancy sector rebounded in 2024, with a 29% rise in vacancies, reaching its highest demand in five years (54% of all openings). PwC reported a 30% year-on-year increase in vacancies, surpassing 1,000 roles. This growth has been driven by the sector's expansion into sustainable practices and the increased adoption of smart technologies.

While accountancy roles have grown, the World Economic Forum has predicted that AI and automation will displace accountants, auditors, and bookkeepers by 2030. Its Future of Jobs 2025 report said the decline reflected broader labour market trends. At the forefront of accounting trends is technological transformation. Companies are swapping traditional Excel sheets for tools that automate everything from invoicing to compliance checks.

Flexible and remote working has become the norm rather than a perk. This enables chartered accountants to work from anywhere, expanding opportunities across the sector.

Despite this growth, the market is becoming more competitive, with fewer roles in certain areas, partly due to rising employment costs. Candidates need to demonstrate real business impact alongside their qualifications to stand out.

Banking

Banking faced its challenges in 2024. Challenges will continue beyond Q1. Traditional banking continues to face contraction (-11.5% in vacancies during 2024), although some areas, like banking operations (+6%) and IT development (+2%), show modest growth. Regulatory challenges and restructuring remain hurdles in Q1. And the focus on streamlining operations and using technologies to drive efficiencies remains. Wealth and private banking roles have grown while insurance roles saw a small increase. These sectors are stable compared to other areas in financial services.

Green finance

The issuance of green, social, and sustainability-linked bonds is projected to exceed $1 trillion globally this year, driven by investor demand and interest rates. Green bonds have influenced the finance sector, particularly in job creation.

ESG objectives continue to rise in prominence and expand in scope, with 87.5% of large firms focusing on social responsibility. According to The UK Accountancy Sector Outlook Report 2024-2025,  91.7% of mid-sized firms aim to reduce their environmental impact.

London has the highest number of green jobs (6,600), while Scotland has the highest share of green jobs in its financial services workforce (5.6%). That’s the equivalent of 2,200 jobs.

In Q1, there is a growing need for specialised roles such as ESG analysts, climate strategists, and sustainability officers as financial institutions align their strategies with environmental goals. Despite growth, the financial services industry faces a green skills gap. Around 16,700 green finance roles were unfilled in 2023.

Top skills finance professionals need to upskill in 2025

Skills vary depending on roles and areas of expertise. We’ve broken skills down into key finance categories. Based on the latest trends and industry insights, here are the top skills finance professionals need to upskill in:

Leadership and soft skills

• Communication
• Adaptability and continuous learning
• Emotional intelligence (EI)

Strategic finance

• Financial modelling and scenario planning
• Change management
• Business strategy alignment

Regulatory knowledge

• Staying updated on local/global financial regulations
• ESG compliance
• Tax policies

Automation expertise

• Implementation of AI and ML in finance operations
• Oversight of automated processes in AP, payroll, and other functions

Strategic decision-Making

• Scenario planning
• Risk assessment

Data analytics

• Proficiency in tools like Python, Tableau, and Power BI
• Advanced Excel functions
• Predictive analytics and data visualisation

FinTech

• Understanding of blockchain and cryptocurrency
• AI and Machine Learning (ML) applications
• Robotic Process Automation (RPA)

ESG and sustainability

• Integration of Environmental, Social, and Governance factors
• Sustainability reporting and metrics

By upskilling, finance professionals can position themselves for a wider range of roles.

Hiring challenges

Rising payroll costs and a subdued economic outlook have led to cautious hiring practices. Despite increased opportunities, the market remains candidate-short for niche roles like finance systems specialists. While many jobs in financial services are expected to experience some level of automation, employment and wage predictions remain positive beyond Q1.

Outlook

While FinTech shows strong momentum, broader economic challenges may limit growth in other areas. Hiring remains in a wait-and-see phase, with February data showing that companies continue to hold back on recruitment. Yet,  all is not lost, as most budgets and hiring plans don’t usually get going until March. Employers focus on closing out 2024 business and people processes. It’s only Q1, and budgets and strategies are being worked on. Come Q2, hiring will pick up, so hold tight, finance professionals.