Saturday 24 March 2018


Jobs in London's finance sector will slump to their lowest level for 16 years as the eurozone crisis is predicted to cause over 25,000 layoffs in 2012.

That would push jobs lost in the City of London since the top of the financial boom in 2007 to 100,000, the Centre for Economics and Business Research (CEBR) said.

The economics consultancy revised its forecast for the average number of London finance jobs for 2012 down to 255,000, the lowest level since 1996, from a prediction of 288,000 made six months ago. Many of the forecast additional layoffs have already taken place, it said.

The analysis showed there were an average of 280,350 financial services jobs in London in 2011.

Lenders were hit hard last year by eurozone troubles, which dented trading revenues, while regulations are also squeezing profits and causing firms to cut staff. Major banks in the US, Europe and Asia announced plans for more than 130,000 job cuts last year.

ECB actions were slowly filtering through to the banking system, however, and could help stabilise the City of London job market from 2013, when the CEBR is forecasting a modest recovery.

It said London finance jobs may rise to 268,000 by 2016 -- still well below staffing levels of the last decade.

"London remains the top ranked financial centre but its lead has narrowed," said Douglas McWilliams, CEBR chief executive, adding the gap was closing due to a combination of weak demand, regulation, high taxation and the competitiveness of Eastern financial centres.

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