Big changes ahead for the City?

A new report from the Centre for Economics and Business Research claims that up 12,000 jobs could disappear from the City of London over the next two years.

Growth in internet trading will see the nature of job requirements changing, and many firms may decide they can locate, or relocate, in less expensive areas.

At the same time, job cuts following mergers and acquisitions are projected to add up to substantial figures. Losses on the order of 30,000 across the UK have been raised as a possibility if the Bank of Scotland take-over of NatWest goes ahead, for example.

That's the bad news. The good news is that the same researchers are projecting significant growth in City jobs after about 2002.

With preparations for increasing use of the euro, even if the UK does not join EMU, there will be new demand for financial and support specialists.

Elliott Chase