Corporate finance job market beats forecast

The outlook for recruitment in corporate finance is much healthier than three months ago thanks to rising economic confidence, a survey shows.

Nearly 13,800 people are employed in the sector in the City of London, according to the report by the Centre for Economics and Business Research (CEBR). This is 11% higher than the number the CEBR estimated would be working in the sector this quarter back in June. The improvement will continue next year, with job numbers growing by 2% in the first quarter.

The picture in securities is similar with staff levels reaching 75,850 by the end of next year, more than 5% higher than the estimate in June of 71,700. Job numbers in derivatives and foreign exchange will also rise, though more slowly.

However, the CEBR revised down its estimate of staff numbers in fund management. This will total just under 33,800 in the first quarter next year, nearly 2% below its earlier forecast.

Fund management continues to suffer from low confidence among investors, the CEBR said.

Nevertheless, the workforce is likely to start growing at the end of next year.

The CEBR said last month that the "pinstriped" workforce in the City, including banking, insurance and law, totalled 302,000 in the third quarter of 2003 - 4% higher than its forecast of 290,000 made in June. Next year, it will edge up to an average of 305,000.