Almost half of City employers expect to reduce recruitment over the next 12 months as the impact of the credit crunch continues to undermine the financial services industry.

Job vacancies in the City were 16% lower in July than in the same month last year, according to a survey published today by Morgan McKinley, the financial recruitment specialists.

More than 150 'leading financial services hiring managers' were asked about their recruitment intentions over the next year. Some 45% expected hiring to decrease, compared with 39% expecting it to stay the same and only 16% expecting it to increase.

Financial Times