City to add 9,000 jobs in 2010
The City will add new jobs next year, but it will take until 2021 for the Square Mile to hit its pre-credit crunch levels, according to a report to be released next week.
London’s financial district will put on 9,000 jobs in 2010 as banks report healthy profits and equity markets rise, according to consultancy the Centre for Economics and Business Research (CEBR).
The CEBR adds in its report London and the City Prospects, published on 19 October, that over the medium term the Square Mile will boost the numbers it employs from 305,000 this year to 325,000 in 2012.
However, the consultancy adds this is well below the 354,000 the City employed at its 2007 peak. It thinks new regulation will mean a “cautious City” will take 12 years to match its 2007 employment numbers.
CEBR economist Benjamin Williamson said: “Re-regulation of London’s wholesale financial services sector will act to limit its economic activity over the medium term. While the City is still expected to retain its position as one of the world’s leading financial centres, growth is likely to remain below recent levels owing to tougher capital requirements and lower yields reducing firms’ profits.”
The CEBR said the financial crisis cost 30,000 city jobs in 2008, and will lead to a further 18,000 job losses this year. However, in April the CEBR had forecast 29,000 City jobs would go in 2009, but it now thinks the economic outlook has improved enough to revise its spring projections.