Labour Market Updates

The UK labour market has experienced notable shifts:

• Employment Trends: The UK labour market continues to hold steady despite rising employment costs and economic uncertainty. With April’s National Insurance hike and minimum wage increases looming, many employers remain hesitant to expand their teams.
  ‍

• Unemployment Rate: The unemployment rate increased slightly from 4.3% to 4.4% as of February 18, 2025, and has remain unchanged since. This reflects cautious hiring sentiment among employers. (Source: ONS)

• Vacancies: Job vacancies continue to decline, with UK job postings now 15% below pre-pandemic levels. This contrasts with peer economies like Germany, Australia, Canada, and the US, where job postings remain above their pre-pandemic baselines. However, within treasury,  I’ve seen job postings rebound in pockets from late February to mid-March indicating a degree of resilience in hiring demand. (Source: Indeed Hiring Lab)
  ‍

• Wage Growth: The UK recorded 6.1% year-on-year wage growth, nearly double the Bank of England’s 2% inflation target, significantly outpacing wage growth in the US and Europe. This has resulted in 3.4% real-term pay growth, providing a boost for workers despite ongoing cost-of-living pressures. (Source: Indeed Hiring Lab)
  ‍

• High-Potential Talent Turnover: A recent Workday Global Workforce Report revealed that 75% of industries are seeing an increase in high-potential voluntary turnover. With top Treasury talent in demand, businesses must refine their retention strategies while remaining alert to poaching opportunities. (Source: Workday Global Workforce Report via LinkedIn)

Treasury Specific Trends

The Treasury sector in London continues to adapt to evolving economic conditions.

‍

Recruitment Shifts Towards Treasury Technology & Automation:

With vacancies declining and wage pressures increasing, companies are looking to treasury technology solutions to improve efficiency. This is driving demand for Treasury professionals skilled in TMS implementation, automation, and process optimisation. This shift is being driven by a combination of rising operational costs and the need to free up treasury teams to focus on strategic initiatives rather than repetitive processes.

‍

Outsourcing of Treasury Functions to Poland & India:

With rising labour costs and talent shortages in Western markets, large corporations are increasingly outsourcing their Treasury accounting and back-office functions to Poland and India.

This outsourcing trend reflects the increasing need for companies to optimise treasury costs while focusing in-house resources on high-value strategic treasury activities such as risk management, liquidity planning, and corporate financing.

‍

Market Volatility & Investor Sentiment:

Bond market volatility remains elevated, with investors closely monitoring policy shifts under the new U.S. administration. The Bank of America/Merrill Lynch MOVE Index—a key measure of bond market volatility—suggests heightened uncertainty among fixed-income investors. Essentially, highlighting that people are concerned about potential policy shifts affecting global debt markets and corporate borrowing conditions. The need for treasury professionals with a strategic mindset and ability to keep a finger on the pulse

‍

Recruitment Spotlight

The below map outlines the key locations where you can find Treasury Analysts, Treasury Managers. Assistant Treasurers / Deputy Treasurers and Group Treasurers.

Glasgow, Bristol and Reading are hidden gem locations, where the supply of talent is high in comparison for the demand of jobs.

‍

The percentages show the change in the past 12 months.

‍