The Square Mile’s white-collar army of professional services workers has shrunk for the first time in two years, according to figures from TheCityUK.
Employment in financial and related professional services in London fell by 0.9% during the first half of 2013 to 669,600, representing a net loss of some 6000 jobs.
Insurance, legal services, accounting and management consulting staff all saw declines.
TheCityUK’s snapshot of the jobs market showed growth among fund managers although legal services staff slipped 1.1% to 101,900 and accounting and management consultancy employees were down 1.7% to 208,800.
Banking sector employees remain stable at 143,000.
But London headcount now stands 33,700 above the low seen in 2010, and office vacancy rates in the City fell from 10% to less than 8% today.
Firms are also more optimistic about employment prospects in the second half of the year. Indicators of financial services activity drawn from TheCityUK’s UK Competitiveness Tracker point to a further recovery. Equity market turnover, foreign exchange trading and the volume of business in UK financial services are up on the previous year.
