City of London to see 27,000 job cuts, study shows

27 October 2011

The City of London is to lose 27,000 jobs in 2011 taking the total back to levels last seen in 1998, a new report has revealed.

A report by the Centre for Economics and Business Research (CEBR) showed that the decline to an average of 288,000 is forecast to be followed by mainly flat growth in both 2012 and 2013.

The figures, which were revised from earlier predicted rises of 2,000 in 2011 and 3,000 in 2012, were lowered due to the implementation of increasingly tighter regulation in the financial services industry as part of the Independent Commission on Banking report led by Sir John Vickers.

CEBR’s report also cited the ongoing crisis and subsequent lack of confidence in the eurozone as reasons for the fall.

Rob Harbron, economist at CEBR and lead author of the report, said that the figures show how the position of London as a key financial hub is “increasingly at risk”.

“With the possibility of further taxation and higher regulation constraining the relative desirability of London as an important financial centre, the gap between the rising Far Eastern centres such as Hong Kong and Singapore continues to narrow,” he explained.

However, further findings from the report showed that growth is expected to return to the eurozone market place by 2014.

By Jim Ottewill

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development