Up to 20,000 city jobs may be axed

Up to 20,000 jobs in the city could be axed during the next two years, says the Centre for Economic and Business Research.

A CEBR report, published yesterday, forecasts that financial services jobs in the capital may drop by 11,000 this year to 342,000 and fall a further 8,200 jobs in 2009 to 334,000.

It says the slowdown across the UK economy could also mean that employment levels may not return to levels seen last year until 2012.

Dominic Walley, senior economist CEBR, said: “The persistence of the credit crunch and magnitude of its impact on many key markets in the city has forced us to revise our forecasts for City jobs in 2008.

“We now expect 11,000 jobs to be shed this year, compared to our previous estimate of 7,000 job losses.”

He adds: “Furthermore, the outlook for 2009 has deteriorated. There is little sign of light at the end of the tunnel for the city.”