CEBR predicts City job cuts

Thousands of job cuts could be made by big firms in the City of London in 2008, it has been predicted.

The Centre for Economic and Business Research (CEBR) has modified its forecast for the finance sector, suggesting that as many as 20,000 employees could be shed in coming months, even though many jobs in the finance sector have already been axed.

According to CEBR Senior Economist Dominic Walley, the impact of the credit crunch has been more persistent than first thought.

'We now expect 11,000 jobs to be shed this year, compared to our previous estimate of 7,000 job losses. Furthermore, the outlook for 2009 has deteriorated,' he remarked.

These findings follow comments from the Recruitment and Employment Confederation, which suggested that finance jobseekers may want to look for work in other industries.

Mr Walley concluded: 'There is little sign of light at the end of the tunnel for the City.'