Banking & Finance – Is the Market About to Take Off?

It’s worth keeping a close eye on the London banking and finance recruitment market.

February was another strong month for new roles, with firms advertising 17 new positions on their websites. This is well above the average number of roles advertised in 2024 (11.5) and 2025 (15).

As the chart below shows, the number of new banking and finance roles has been steadily increasing since Q1 2024.

Chart showing the number of new Banking & Finance roles based in London and advertised each month on Law Firms career pages.

For the last 2 months the number of active roles each month has averaged just over 50, which is 25% more than the average number of active roles per month in 2025 (40) and 40% more than the average for 2024 (36). Knowing the number of active roles is important and can be helpful in understanding what is happening in the underlying recruitment market.

Recruitment Market Drivers:

The recruitment market is generally driven by three factors:

• the number of active roles

• the number of lawyers willing or looking to move

• the speed at which firms need to hire

What Drives the Number of Roles?

The number of active roles is largely driven by how many firms are looking to grow in a particular practice area and how confident they are that they will have sufficient work to support additional lawyers in their teams.

Confidence in the broader market therefore plays a significant role. When firms feel optimistic about deal flow and client demand, they are more likely to expand their teams. A general increase in the number of roles can be a signal that there is more confidence in the market in that practice area.

What Drives Candidate Movement?

Whether a lawyer is willing or actively looking to move is influenced by several factors. However, across professional services firms, annual attrition rates typically fall in the 15-20% range. On that basis, it is reasonable to assume that each year around 15–20% of associates may be willing or open to making a move.

Where the figure sits within that range is largely driven by the opportunities available and confidence in the recruitment market. When lawyers feel uncertain about the future and there are not lots of opportunities available, they tend to be more cautious and less willing to change roles. Conversely, when confidence increases and opportunities become more visible, more lawyers are willing to explore new options and consider making a move.

Why Hiring Speed Matters

The first and third factors - the number of roles and the speed at which firms hire - are also closely linked.

Lateral associate hiring is effectively a zero-sum game. When Firm A hires a lawyer from Firm B, this creates a vacancy at Firm B. That position is then often filled by a lawyer from Firm C, and so the cycle continues.

As a result, the faster roles are filled, the more hiring activity tends to occur across the market over the course of the year.

The speed at which firms move to fill roles is also influenced by confidence in the market. When firms are busy and partners are confident that work will continue to flow, there is greater urgency to fill gaps in teams quickly. By contrast, when confidence is lower, firms are often more comfortable taking their time and allowing hiring processes to run more slowly.

Role-Led vs Candidate-Led Markets

Market conditions are largely determined by the balance between roles and candidates.

If the number of lawyers seeking roles is higher than the number of available positions, the market becomes role-led. In these conditions, firms are typically in a stronger position and can afford to be more selective in their hiring processes.

However, when the number of available roles begins to exceed the number of lawyers actively looking to move, the market becomes candidate-led. Firms will find it much harder to fill positions, while lawyers - and recruiters who proactively identify candidates - are in a much stronger position.

What the Data Tells Us

Not all firms advertise their vacancies publicly, but over 150 firms do post roles on their careers pages, (although this may not include every open position).

We estimate that these advertised roles represent roughly 50% of the total roles in the market, and so provide a useful indicator of overall hiring activity.

Based on the current numbers, the banking and finance market still appears to be role-led. However the increase in the number of active roles each month suggests that there is more and more confidence in the market. If this confidence continues to increase and starts to shift through to candidates the effect is self-reinforcing and it would not take much for conditions to shift towards a candidate-led market.

When that shift happens, it can occur very quickly. As confidence grows, the number of roles and the underlying demand to hire increases. Firms then need to move faster to secure talent, accelerating hiring processes. That, in turn, drives greater movement between firms, creating further vacancies and additional hiring demand - which reinforces confidence among candidates and fuels the cycle further.

The market would move slowly at first, but once it reaches a tipping point, the increase in roles can become rapid.

What This Means for Lawyers

For lawyers considering a move, it’s worth paying attention to what is happening in the market.

At the moment, opportunities may feel more limited. However, if confidence continues to grow, you may soon find that you receive more cold calls from recruiters with genuine roles to consider.

When that happens, it’s important to focus on making the right move, rather than simply pursuing the first opportunity that appears. As the market gains momentum, it is very likely that more and more options will emerge.

Being prepared for market turns - and recognising when they are happening - puts you in a far stronger position to take advantage of them, allowing you to make more considered choices and move in a way that best supports your long-term career path.

What This Means for Partners and Inhouse Resourcing teams

For partners and resourcing teams who expect to hire banking and finance associates this year, it may be worth watching the market closely.

At present, you may feel that you are able to be selective and take your time in your hiring decisions. However, if conditions shift and confidence continues to improve, you may find that competition for associates significantly increases, and your need to hire increases as more associates than expected are making moves.

If you would like to stay updated on the market follow us on Linkedin or if you would like to discuss your career strategy or seek any guidance, book a free 15 minute introductory call.