Brexit: Over 7,000 finance jobs left London for EU, says EY | Financial sector
More than 7,000 finance jobs have moved from London to the EU as a result of Brexit, 400 less than the total expected in December, consultants EY said.
While the total is well below the 12,500 job changes companies predicted in 2016 when Britain voted to leave the bloc, more could follow, EY said in its latest Brexit tracker.
EY said Brexit-related new local hires stood at 2,900 in Europe and 2,500 in Britain, where just over a million people work in the financial services sector.
Further relocations could result from European Central Bank checks into whether EU Brexit hubs opened by banks that used London as their European base had enough staff to justify their new licenses, EY said.
The Bank of England is reviewing them to prevent London banks from ending up with too few senior managers.
“The movement of personnel and operations in European financial markets will continue as companies navigate the current geopolitical uncertainty, post-pandemic dynamics and regulatory requirements,” said Omar Ali, Head of EMEIA Financial Services at EY.
Dublin is the most popular destination for staff relocations and new hubs, followed by Luxembourg, Frankfurt and Paris.
EY said Paris scored highest in terms of attracting jobs from London, with a total of 2,800, followed by Frankfurt with around 1,800 and Dublin with 1,200.
The transfer of assets from London to EU hubs remains around £1.3bn, EY said. He added that Brexit-related staff movements were part of a broader view of strategic business drivers and operating models.
Bankers have privately said that in the longer term it might not make commercial sense to have big hubs in London and the EU.