London job hiring falls 5% after Starmer’s resignation

Professional job vacancies in London fell 5% quarter-on-quarter to 4,636 in Q2 2026, with employers delaying recruitment following Prime Minister Keir Starmer’s resignation.

The figures revealed in Morgan McKinley’s latest London Employment Monitor, also show vacancies down 3% on the same period last year. The decline follows a strong start to 2026 and means jobseekers face a smaller pool of professional roles in the capital, with recruitment processes becoming more targeted and selective.

Mark Astbury, Director at Morgan McKinley, said the drop reflects growing caution among employers making hiring decisions against an uncertain political and economic backdrop. “Business leaders are once again facing political uncertainty following Prime Minister Keir Starmer’s resignation,” he said.

“Many organisations are delaying recruitment until there is greater clarity over the Government’s direction and economic priorities.”

Starmer announced his resignation as Labour leader on 22 June after mounting pressure from within his party, with former Greater Manchester mayor Andy Burnham the frontrunner to succeed him. Former Manchester Mayor Andy Burnham has all but been confirmed to succeed him by the end of July.

The transition leaves employers waiting on the incoming government’s economic priorities before committing to headcount growth.

Astbury said stronger-than-expected GDP growth has not translated into stronger hiring confidence, with businesses facing rising employment costs including higher taxes and wage pressures.

“Although economic indicators have shown some resilience, many employers remain reluctant to expand headcount until there is greater clarity around the UK’s economic and political outlook,” he said. “This does not mean recruitment has stalled. Organisations continue to hire where they see clear commercial value.”

For jobseekers, demand remains strongest for professionals who can drive growth, improve productivity and support digital transformation, according to Astbury, with investment in AI and automation continuing to create opportunities for skilled technology talent.

“Until there is greater political and economic certainty, we expect recruitment activity to remain measured, with businesses prioritising quality over quantity over broad expansion,” he said.

This June marked ten years since the Brexit referendum, a decade in which Astbury said employers have repeatedly adapted hiring strategies in response to external shocks, from Brexit and the pandemic to geopolitical tensions and shifting global trade policies.

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