The number of London-based financial services jobs average for 2012 is estimated to be 255,000 compared with peak of 354,000 in 2007.
Cebr now estimate that the average number of City jobs for 2012 is likely to be down to 255,000 compared with the estimate of 288,000 made 6 months ago. The additional fall reflects the impact of the Euro crisis on the banks which has fed through to a second credit crunch and then into the financial markets. This is despite the impact of the increased lending by the ECB through the LTRO since December.
Much of the fall in the number of City jobs has already taken place during the past 6 months and Cebr cautiously estimates that the position may be starting to stabilize as a result of the action by the ECB , with a modest recovery forecast for the period from 2013-2016. By 2016, Cebr forecasts that the number of City jobs may have recovered to 268,000.
The last time that the number of City jobs was as low as 255,000 was Q1 1996.
Cebr CEO Douglas McWilliams said: 'The new data we have on jobs shows how the financial crisis is hitting 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. London remains the top ranked financial centre but its lead has narrowed.
'One of the consequences is that the tax revenues from the City - which did so much to finance UK public spending in the boom years - are greatly diminished and likely to stay that way'.