London job vacancies stuck below pre-Covid-19 levels, new data shows

Lower footfall due to hybrid work causing some services sector jobs to be lost forever

LONDON - London vacancies are set to remain below pre-Covid-19 levels, lagging behind the rest of Britain after hybrid working trimmed demand for shop assistants and baristas near offices.

Job postings in the capital are stuck at 25 per cent below where they were just before the beginning of the pandemic, after a deterioration that began in 2023, according to data from recruitment site Indeed.

Outside of south-east England, all other British regions are seeing new jobs at or even surpassing pre-Covid-19 numbers.

London vacancies are "never going to get back" to above levels seen in February 2020, said Mr Jack Kennedy, a senior economist at Indeed.

While part of the slowdown in hiring could be reversed by improving economic conditions, some retail, hospitality and leisure jobs lost due to lower footfall might be gone forever.

"There is going to be a lasting headwind from hybrid working," Mr Kennedy added. "Unless it completely goes back to five days a week in the office, then we're going to see a drag from that aspect, at least on the jobs in local services that used to rely on commuters and spending on all sorts of things."

Fewer office workers splashing out on lattes and after-work pints is one among a long list of challenges that have scarred the hospitality sector in recent years.