Number of City jobs plummets to a 16 year low
FINANCIAL sector jobs in London are tumbling to their lowest level since 1996, according to estimates released this morning.
The average number of roles in 2012 will be down by nearly 100,000 compared to the pre-crunch peak, the Centre for Economics and Business Research (CEBR) expects, as crisis in the Eurozone and harsh red tape strangle the City.
“The combination of weak demand, aggressive regulation, high taxation and the rising competitiveness of financial centres in the Far East mean that London’s position is weaker than before,” said CEBR chief executive Douglas McWilliams.
His team forecasts that total wholesale financial sector jobs in London – including both the City and Docklands – will come in at around 255,000 this year, the same as in 1996. The estimate has fallen by 33,000 in the last six months, and is down from a peak of 354,000 in 2007.
“The new data we have on jobs shows how the financial crisis is hitting the City,” McWilliams added. “London remains the top ranked financial centre but its lead has narrowed.”
Worried City workers could take some relief from the report, however, which said that the decline in jobs could be starting to bottom out.
The calculations foresee “a modest recovery forecast for the period from 2013-2016.” It added: “By 2016, the CEBR forecasts that the number of City jobs may have recovered to 268,000.”