Friday, 28 October 2011
Job losses, EU caucuses, bonuses plunging and law suits are putting the City in the headlines for all the wrong reasons.
By the end of the year, The City of London will have lost 27,000 jobs over the course of 2011, to bring its workforce back down to the levels of 1998.
The Centre for Economics and Business Research (CEBR), the economic consultancy that carried out the research , warned that the prospect of tighter regulation such as the Vickers report on Banking as well as the Eurozone debt crisis were the cause of the job losses across a variety of sectors including trading, insurance and banking.
Rob Harbron, author of the research, said: "It's a worrying statistic for the London economy, the long term consequences could be severe."
Although there were seemingly endless problems in the Eurozone with leaders "failing to get a grip of the situation" this was only a part of the problem, he said.
"There is a very fine balance on keeping the regulations tight so we don't have another banking collapse and letting the market place breathe a little. If you look at economies such as Hong Kong, they seem to have hit it right."
CEBR, which had earlier in the year predicted there would be job creation as opposed to job losses, said employment would flatline for a number of years to come.
"London drives the national economy," says Harbron. "If the capital is badly effected it may well affect the whole UK for a long time."
Posts
