Financial and professional services employment in London up in 2012

05 Oct, 2012

Increase in legal services offsets decreases in insurance and banking

Employment in financial and professional services in London increased to 666,400 in the first six months of 2012, according to a new report from TheCityUK. The increase of 0.4% builds on growth of 3.8% in 2011 and is primarily due to increases in professional services jobs.

TheCityUK’s London Employment Survey found that there was a net increase of 2,700 jobs in the first half of the year, largely due to 1.5% growth in professional services. This increase offset a 0.5% decline in financial services employment over the period. The survey was of firms that together employ over 100,000 people in London’s financial and professional services sector. It revealed that companies have experienced slower than expected growth in 2012, but that overall London headcount had remained relatively stable.

The legal services sector saw the biggest increase in jobs in the first half of 2012, at 3.3%, while management consulting and accountancy saw a combined growth of 0.4%. Within financial services, the insurance sector experienced the biggest decline at 2.3%, followed by banking at 1.6% and fund management at 0.8%.

The largest sector by employment is the accounting and management consulting, which as of June 2012 together employed 191,600 people in London. The next largest sectors are banking (143,800), legal services (118,700), insurance (70,700) and fund management (22,000). Auxiliary and other financial services sectors employ an additional 119,600 people.

Chris Cummings (pictured), Chief Executive of TheCityUK, commented on the survey: “It’s great to see that employment in the financial and professional services sector in London has continued to increase in the first six months of 2012, and we are forecasting a 0.5% increase for the full year.

“The financial and professional services sector is critical to the UK economy and London is the number one financial centre in the world. However, we can’t afford to be complacent. The job market is still sluggish and London is facing competition from other financial centres, including those in Asia and America. We need to do all we can to ensure that London remains attractive to talented employees as a place to work, and that firms are able to compete against their peers in the US and Far East.”

The full report is available at www.thecityuk.com.

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