London Finance Jobs At All Time Low
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London’s finance sector is facing a 16-year low in the number of available jobs, said the Centre for Economics and Business Research (CEBR) on Wednesday, with the eurozone crisis expected to cause over 25,000 layoffs in 2012.
According to the CEBR, finance sector jobs in the U.K. capital was now estimated to fall to just 255,000 this year, compared to a previous estimate of 288,000 made just six months ago and down from the 280,350 jobs reported last year.
London’s finance sector is facing a 16-year low in the number of available jobs, said the Centre for Economics and Business Research (CEBR) on Wednesday, with the eurozone crisis expected to cause over 25,000 layoffs in 2012.
According to the CEBR, finance sector jobs in the U.K. capital was now estimated to fall to just 255,000 this year, compared to a previous estimate of 288,000 made just six months ago and down from the 280,350 jobs reported last year.
The figure will also be the first time that the U.K. financial sector has reported such low figures in employment since the first quarter of 1996, and be well short of its peak of 354,000 jobs reported just before the 2008 financial crisis.
[quote]“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, as quoted by Bloomberg.[/quote]“The continuing weak economic performance and banking crisis in the euro zone is having a dampening effect on the City of London’s economy,” added Rob Harbron, an economist at the CEBR.
It’s “having a knock-on effect for business performance in the City – lower trading volumes, and importantly smaller values for the trades that are taking place.”
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Though London remains the world’s centre for foreign-exchange trading, cross-border bank lending and interest-rate derivatives, the average value of FTSE 100 shares traded over the past 50 days has fallen close to 69 percent from its high in December 2007.
Instead, financial centres in Hong Kong, Shanghai and Singapore have seen marked increases in their trading volumes and values at the expense of their western counterparts.
Nevertheless, the CEBR remains optimistic that London finance jobs may rise to 268,000 by the end of 2016 on the back of improved refinancing operations provided by the European Central Bank.
The U.K. economy fell into its first double-dip recession since the 1970s in the first quarter of the year with government spending cuts, rising unemployment and higher-than-targeted inflation weakening economic activity. Banks such as Lloyds Banking Group and Royal Bank of Scotland Group have already said that they would eliminate 2,064 jobs in the U.K. to control costs.
