The labour market in London
London's job market is highly competitive. It is known to attract international job seekers, tens of thousands of recent graduates, and people from smaller cities and towns drawn to the capital city's promising opportunities.
An overview of London's job market
London's labour market remains strong despite a severe financial European crisis, a pandemic, and an ambiguous Brexit. With 587,000 workers, The City of London is known to generate an amount of £85bn annually and is known to have one of the highest numbers of young and international workforce in the UK.
In February 2023, the Office for National Statistics estimated the unemployment rate in London to be 4.7% and the average working hours at 33.4 hours per week.
Good to know:
As of 2023, London has seen an increase in firms piloting the 4-day workweek approach, allowing employees more time to plan their work to cater to personal commitments.
Job sectors in London
London's most potent sector has historically been the financial industry, which includes banking, investment, underwriting, and trading. Despite the number of financial jobs shrinking over recent years as a result of Brexit, the industry continues to be on the lookout for highly skilled talent and keeps hiring. Some big employers to look out for in the financial industry include Goldman Sachs, HSBC, Barclays, Natwest, and Citigroup.
Good to know:
Most employers will ask for graduates to have achieved a 2:1 as part of their studies to join as part of the Graduate Scheme they offer.
Following COVID-19, the London hospitality industry took a big hit, and employers have been trying to retain talent. Benefits such as mental health, well-being days, and health insurance have been reviewed to ensure the sector attracts skilled professionals.
One cannot speak about London's biggest employers without mentioning the capital city's higher education institutions, contributing to London's economy by several billion pounds yearly. The jobs aren't only directly linked to the universities per se (e.g., academics, admissions staff, caretakers, etc.); thousands of satellite jobs are also created due to needs arising from a large student community. Thus, businesses such as cafeterias, restaurants, convenience stores, community partnerships, etc., open and offer employment to many. Check out The Uniijobs for a list of vacancies available by higher education institutions.
Other appealing sectors in London are fashion, technology, healthcare, media, pharmaceuticals, tourism, and the legal industry.
Tip:
Did you know the city hosts the London Fashion Week twice yearly? This is an excellent opportunity to network and meet fashion professionals from other countries.
Good to know:
If you want to work in a startup, the startup environment in London is very active, and entrepreneurs are always searching for talented people to shape their teams.
London's salaries
Pay growth in London remains low, even though London salaries are higher than anywhere else in the UK. When deciding to work in London, it is a good idea to be aware of the cost of living associated with the city to ensure you can live a decent life.
According to the latest 2022 figures, the average salary in London is £39,000. People working within the financial sector can expect an average wage of £52,000. Other high-paying industry players include data analytics, with an average salary of £51,500; and £48,000 for technology.
As a result of the increase in the cost of living, the Living Wage Campaign was launched in 2011. It aims to calculate hourly rates of pay independently based on the cost of living. London's living wage is calculated at £11.95 per hour.
Good to know:
Unlike the National Minimum Wage, the Living Wage recognizes the higher costs faced by people who live and work in London.
