City boosted by early year jobs pick-up

Tim Wallace
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CITY hiring jumped sharply last month, rebounding from record lows recorded in December and hinting there may be some hope that the pressures on financial services firms are easing a touch, according to new data out today.

A total of 2,509 jobs were created in January, recruiters Astbury Marsden report today, more than three times the 802 created in December.

That figure was the lowest recorded since Lehman Brothers collapsed and the credit crunch struck in 2008. And despite the rebound, hiring remains well below the 13,000 per month seen before the famous US institution collapsed.

“New job creation in the City has been extremely depressed as politicians and regulators have put enormous pressure on the investment banks to scale back activity,” said Astbury Marsden’s Mark Cameron. “The amount of capital investment banks now have to maintain on their balance sheets makes them less profitable and that means huge job cuts.

“In fact so damaging have those attacks on banks been to the job creation agenda that there are signs, in some areas, that regulators are easing off slightly.”