Job cuts loom in the City, says CBI

The credit crunch is continuing to bite it seems as a new report by the Confederation of British industry (CBI) has advised the finance sector to brace itself for more job cuts.

Working alongside PricewaterhouseCoopers, the CBI has found that a third of finance businesses expect to continue releasing employees during 2008.

This is despite the fact that a quarter of firms have already axed jobs since the credit crunch.

It is thought that profitability will also be reduced as the economy continues to slow down.

CBI Chief Economic Adviser, Ian McCafferty, warned that the future effects of the slowdown will be felt into 2009.

'We can expect further tough times in the financial sector and as this feeds through into the wider economy it will inevitably be felt through slower economic growth this year and next,' he remarked.

Yesterday, graduates were warned by the Association of Graduate Careers Advisory Services that many students apply early for recruitment schemes in the finance sector.