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City jobs to fall by 33,000

33,000 jobs in the City are likely to go this year as a result of the Eurozone crisis, according to the Centre of Economics and Business Research.

In 2012 the number of City jobs is likely to be down to 255,000, compared with previous estimates of 288,000. This is the lowest level since 1996.

The City has now lost almost 100,000 jobs since its workforce peaked at 354,000 in 2007 before the financial crisis.

Despite this however, many of this year’s job losses have already occurred, and signs are that the situation is stabilising thanks to the European Central Bank giving lenders cheap money. A modest recovery over the next three years has also been predicted, to 268,000 jobs by 2016.

More generally however, unemployment is set to rise across the whole of the UK, except in the South East, South and in London. Despite an increase in permanent hirings in April, it was at the slowest rate since January.

Speaking to the Financial Times, Bernard Brown, KPMG partner, said: “Unemployment rates are likely to continue to rise in the short term. The question, now, is whether we start to push the 3 million mark.”

Unemployment currently sits at 2.65 million. and according to Mr Brown, “the recent economic data in the UK and continued global economic uncertainties, the situation is unlikely to improve.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .