London loses over 7,000 finance jobs to EU post-Brexit

More than 7,000 jobs in the financial services sector have moved from London to the European Union as a result of Brexit, according to the latest Brexit tracker from consultancy EY.

This estimate is a decrease of 400 from the total anticipated in December, and is down from the 12,500 job moves forecast by firms in 2016.

EY noted, however, that 44% (97 out of 222) of the largest UK financial services firms have moved or plan to move some UK operations and/or employees to the EU since the referendum.

“Staff and operational moves across European financial markets will continue as firms navigate ongoing geopolitical uncertainty, post-pandemic dynamics and regulatory requirements,” said Omar Ali, EMEIA financial services leader at EY.

Dublin is the most popular destination for employee relocations and new European hubs or offices, with 36 financial services firms announcing intentions to relocate UK operations and/or staff to the city. Luxembourg is in second place, attracting 29 companies, followed by Frankfurt with 23 companies and Paris with 21.

Paris scores highest in terms of attracting jobs from London, with a total of around 2,800, followed by Frankfurt at 1,800, and Dublin with 1,200.

The tracker also shows that since the referendum, 24 firms have publicly declared they will transfer just over £1.3tn of UK assets to the EU. There was a last-minute increase in firms announcing asset moves in the months before the end of the transition period on 31 December 2020, when it became clear that the UK-EU trade deal would not offer concessions for the UK’s financial services sector.