The number of jobs created in the City of London slumped by more than a third last year, according to a study published today.
About 35,000 posts were created in 2012, down from 54,000 a year earlier, said recruitment firm Astbury Marsden.
The research also showed that 800 jobs were available in the City in December compared with almost 1,500 in the same month in 2011.
Mark Cameron, chief operating officer at Astbury Marsden, said cost-cutting remained a key focus for senior management and board members throughout last year.
He said: “Tighter regulation, including higher capital requirements, forced up costs at a time when revenues dipped due to a number of factors including a continued weak economy.
“Although broad cost-cutting is fairly typical in the City during a downturn, 2012 was particularly significant as senior management in banks took very decisive action and implemented major structural changes, including winding down entire units.”
Cameron said that hopefully we were now over the worst of the cost-cutting. “Although banks may still tinker with staffing numbers, most of the obvious and immediate cuts are likely to have now been made.”
Figures released last month by the firm showed that average basic pay in the City rose by just 2 per cent in 2012 to £84,438, compared with a massive 12 per cent leap during the previous 12 months. Average base pay for managing directors fell by 29 per cent to £167,364 in 2012.
ALAN JONES