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City job losses could hit graduates
Monday, 08 October 2007
Professional & financial services
The recent turmoil in the financial markets could hit graduate careers as the City reacts to the credit crunch with widespread job cuts, experts have warned.
A new report by the Centre for Economics and Business Research (cebr) predicts 6,500 jobs will be lost in 2008, with the market uncertainty also hitting bonuses.
However, while the job cuts could spell bad news for graduate recruitment, the cebr report also points out that the figure is significantly lower than the 11,000 positions created in the financial sector this year.
The report's co-author, Sarah Bloomfield, warns that any shrinking of the workforce will hit some sectors harder than others. She said: "Private equity, mergers and acquisitions, hedge funds and structured finance bosses will have to write the most letters."
At the same time the report states that continuing high levels of recruitment should ensure that employment levels in the City return to their current state by 2009.
And despite the temporary setbacks, a recent study by the Confederation of British Industry showed at least 25 per cent of financial sector businesses are still looking to expand, ensuring continuing job creation for graduates.