According to the Centre for Economics and Business Research, UK’s economy has managed to remain robust therefore London’s growing financial district will create more new jobs in 2007 than previously expected.
The job growth in the City of London financial centre that has driven employment to record highs in 2006 is showing signs of cooling off though.
Major investment banks have been hiring steadily in 2006 to take advantage of a surge in M&A and corporate finance activity, plus booming stock and bond markets.
Thanks partly to increasing regulatory demands on financial firms, recruitment could pick up again in 2009, with professional services staff most in demand. CEBR forecast total City of London jobs in 2009 at 336,100, roughly level with 2006s record total.
And even though cross-border mergers and flotations are forecast to continue at a rapid rate, CEBR expects the number of corporate finance jobs to be about 13,500 in 2009, close to current levels.
An official report by internationally renowned management consultants McKinsey has said New York is losing its place to London as the world’s leading financial centre.
Last year, 419 international companies were listed on the London Stock Exchange compared to just 174 in New York.
And this translates into jobs with London’s financial companies taking on more than 12,000 extra people in the last three years.
318,000 people are employed in Londons financial district, while 328,000 employed in NY financial district.
Ian Barlow, a senior partner at accountancy firm KPMG and chairman of Think London, aims to encourage overseas firms to set up in London: We know that London is a great financial centre.
We constantly promote London as a place where the world’s companies can and should do business and we say that every overseas firm, wherever they are based, should set up in London as well.