Credit crisis could cost 194,000 London jobs

by Gill Montia

Story link: Credit crisis could cost 194,000 London jobs

Oxford Economics is predicting that the credit crisis and ensuing economic downturn could create around 194,000 job losses in London, over the next two years.

The well-regarded economic consultancy expects the capital to take the brunt of the fall out and is forecasting that London job numbers will decline from 4.71 million in 2008 to just over 4.51 million in 2010.

Around 97,000 posts are expected to disappear in 2009, followed by a similar number in the following year.

The analysis predicts that financial services will see the heaviest cull, with losses in the region of 40,000 during 2009.

Headcounts in the business support services industry will decline in 2009, as a knock-on effect, and other sectors will feel the pain, with retail particularly vulnerable.

The public sector will be least affected, with no job cuts expected.

The City and Tower Hamlets areas will be hardest hit, the latter being home to Canary Wharf.

In the Square Mile around 35,000 jobs losses are expected and in Tower Hamlets over 18,000 jobs could go over the next two years.

According to Oxford Economics, recovery will be slow and possibly hampered by stricter regulation in the financial sector.