Despite some of the positive reports of economic recovering over the last couple of weeks, a report released by the Centre for Economic and Business Research (CEBR)has said that employment figures in the City are expected to drop to their lowest levels since 1993 and by next year will fall to 237,000.
The City has suffered from the financial crisis as there has been a fall in the trading of currencies and equities, with the slow down of the amount of corporate mergers and acquisitions all impacting the number of jobs available. Figures from PwC and the CBI suggest that 60% have cut their staff numbers over the third quarter of 2012.
The CEBR chief executive, Douglas McWilliams, said: “The fall in activity is partly a function of the weak economy, partly a hangover effect from the financial crisis and partly caused by increasing regulation which limits access to bank cash to bankroll financial transactions.
All of this does not bode well for the young people across the UK, particularly graduates, many of whom would be looking to the City for some of these types of careers. A study by the University of Warwick has said that of students who started university in 2006 40% were in lower skilled jobs 18 months after graduation compared to figures of 26% of graduates who began university in 2009. Suggesting that this decline in city jobs is really impacting on graduates and perhaps businesses are slowing some of recruitment and reducing staff numbers at the more junior end.
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