Jobs revival for London

Thirty-five thousand jobs will be created in the City of London between now and 2008, a new study said.

The Centre for Economics and Business Research (CEBR), a think tank, forecast that City employment will rise by 8,000 in 2004, by 7,000 in 2005 and by a further 20,000 between 2006 and 2008. It is currently about 300,000.

The CEBR based its forecast on optimism about the world economy and the positive effect of emerging markets, like China, which are expected to encourage banks to hire additional staff.

Recruitment is forecast to be highest in the securities dealing sector, where employment is expected to increase by 13,000 over the next four years.

Strong growth is also forecast in the international banking and corporate finance areas, which the CEBR said were particularly badly hit during the downturn of 2001 and 2002. The survey included insurance and accountany as well as banking.

The CEBR said its predictions are vulnerable to risks such as high oil prices and rising interest rates.