The City of London will lose 62,000 jobs by the end of 2009, wiping out all the growth of the last 10 years, a firm of economic consultants predicts.

Employment in London's financial district will fall by 28,000 this year, with a further 34,000 to go in 2009 as a result of the credit crunch, the Centre for Economics and Business Research said. The slump would take the City back to levels last seen in 1998.

The worst-hit sector will be corp-orate finance, which is set to lose half of its 15,000 employees because of a slump in demand for advice on mergers and acquisitions and leveraged buyouts. Derivatives will also be hit hard, with 46% of employees losing their jobs.

The Independent