City employment could hit 'ten-year low'

More than 60,000 City employees could be lost by the end of the year, resulting in the lowest level of employment in the industry for over ten years.

According to a report by the Centre for Economics and Business Research (CEBR), firms will axe 28,000 jobs in the City of London with a further 34,000 in 2009.

Richard Snook, senior economist at CEBR, commented: "The credit crunch has spread through global markets like a virus and threatens to plunge the world into recession."

The job losses could cut the number of people working in the City to 290,847 - the lowest level since 1998, according to the Irish Independent.

"About half of the City's 15,000 corporate finance jobs will disappear by the end of next year as mergers and acquisitions slow," said the CEBR report.

In March this year, the CEBR suggested up 10,000 City jobs could be lost, 50 per cent more than previously estimated.

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