The number of new jobs created in the City of London (the financial and banking district of London) increased slightly in July compared with the previous month, but was still well down on a year ago, according to new research Monday.
A study by recruitment firm "Astbury Marsden" showed there were almost 3, 000 new jobs in the City last month, a 3 percent increase on June but 39 percent fewer than the same time in 2011.
The report said the jobs market in the sector had now stabilised after a slump, although the appetite to hire new staff was described as "pretty thin." Mark Cameron, chief operating officer at Astbury Marsden, said "Banks are hiring new staff, although this is more often than not to replace departing staff, as opposed to reacting to an anticipated growth in investment banking revenue.
"With the uncertainty generated by the on-going rumblings from the Spanish banking sector and the seemingly ever-present eurozone problems, we're not expecting things to improve dramatically this year. Still, in this context, a stabilisation in new jobs is a positive." The banking sector in the US and the UK faced the severe crisis of the credit crunch in 2009.
In addition, Europe was now facing the eurozone mounting turbulence that has cast a shadow on the prospects of recovery in the EU, analysts said.