Europe

Europe

London to lose 27,000 jobs in 2011

27 October 2011 21:45 (UTC +04:00)

Baku-APA. A monetary consultancy has warned that London will lose 27,000 jobs in 2011. Last seen in 1998, the figure comes in the height of the euro zone debt crisis, APA reports quoting Press TV.

Amid financial stagnation in UK along with the outlook of further economic regulation, a report by the Centre for Economics and Business Research (CEBR) has revealed that the fall to an average of 288,000 would be followed by largely flat growth in both 2012 and 2013.

Earlier this year, CEBR estimated that around 2,000 job posts would be created in 2011 and 3,000 in 2012, but now it believed that 27,000 jobs will be gone by the end of 2011.

CEBR’s economist Rob Harbon warned that the recent figures proved how the role of the British capital as a key centre in global economy is â€œincreasingly at risk.â€

"With the possibility of further taxation and higher regulation constraining the relative desirability of London as an important financial centre, the gap between the rising Far Eastern centers such as Hong Kong and Singapore continues to narrow," he added.

Meanwhile Mervy King, the governor of the Bank of England, had warned that UK’s economic recovery is off the track and accused the British government of not taking correct measures to handle the country’s economic crisis.

Despite taking emergency steps including low interest rates and printing new money, the governments could not yet tackle the fundamental problem of overspending which is the underlying cause of the economic crisis, King said.