Fintech Driving Jobs Growth in the UK

May 19, 2016         By: Mike Dautner

New research is showing the benefits that the financial technology sector is bringing to the economy.

Recruitment finance provider Sonovate recently released a study showing the explosive jobs growth created by fintech companies in the UK looking for new talent.

The data is somewhat unsurprising. The UK is one of the earliest adopters of fintech and has taken steps both at the government and corporate levels to provide a healthy environment for fintech companies to grow. Now the UK is reaping the fruits of its labor.

According to Sonovate, fintech is having a particular impact on the contracting job market.

Many workers, especially those in the millennial generation, are switching to freelance work rather than working for a company.

Over the first quarter of this year, contracting job advertisements surged 64 percent compared to the previous quarter.

Consultancy positions performed the best by far, skyrocketing 525 percent over the quarter, with average daily rates standing at £475 per day.

Freelance job advertisements aren’t the only ones that have grown rapidly. Ads for permanent positions grew 57 percent over the quarter and 732 percent over the past year.

At the same time, the compensation for all positions both freelance and permanent have increased rapidly as well.

Sonovate attributes this jobs boom to the fintech industry. “2015 was a crucial year for UK FinTech: while it’s been a cornerstone of our financial and technology markets for a while, we’ve seen clear increases in the industry’s overall investment, growth, and economic contribution,” said Sonovate co-CEO Richard Prime.

“More jobs, more money, and more growth. The FinTech employment market is experiencing a global boom at the moment – and the UK is at the forefront.”