Economic downturn to cost 144,000 jobs in London

A report is predicting the loss of 144,000 jobs in London as the economic slowdown hits the business sector.

The Centre for Economics and Business Research claims that London’s growth could fall behind the rest of the UK for the first time since 1992.

It is predicting growth of just 1.8 per cent for London this year, compared to 2.1 per cent for the UK as a whole.

The report blames the slowdown on the financial and business services sector, with growth in financial services expected to fall from 6 per cent in 2000 to 0.7 per cent in 2002.

“At this stage we still think that a slowdown is more likely than a full blown recession. But some sectors like parts of the City, media and tourism are already clearly having a tough time,” said Kevin McCauley, the centre’s managing consultant.

By Karen Higginbottom