Recession deepens as another 29,000 City jobs to be lost this year

Thousands more City finance jobs are expected to go this year despite signs of economic recovery, according to a research organisation.

The independent consultancy, the Centre for Economics and Business Research (CEBR), has predicted the loss of another 29,000 City finance jobs, on top of the 34,000 jobs it already predicted in October.

Richard Snook, a senior economist at CEBR, said: “We are beginning to see light at the end of the tunnel for the City.” However, he added “there will be further serious job losses”, with the worst-hit sector likely to be derivatives.

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A fall in mergers and acquisitions will also lead to job cuts, he said.

CEBR chief executive Douglas McWiliams warned that overly tough restrictions on the City, prompted by the banking crisis, could damage the long-term growth of the finance sector.