London may lose 40,000 City jobs as a result of the sub-prime crisis and global credit crunch, according to analysts at JP Morgan Chase. Daily Telegraph
The figure doubles its estimate in December, and is equal to about 6% of the capital’s estimated 700,000 financial services industry workers.
Redundancies from Britain’s lucrative banking-related sectors will have repercussions for the housing market as well as businesses such as restaurants that rely on bankers’ spending power.
JP Morgan’s new estimate came from its property team, rather than its economists, who said in a note: 'We expect a potential 40,000 job losses in the City and minus 16% rental growth.'