City jobs falling despite recovery signs

The number of new jobs in the City of London fell last month despite signs of a recovery in the wider economy, new research has shown.

Recruitment firm Astbury Marsden said 2,335 new posts were created in October, down from 2,380 the month before, and 12% fewer than a year ago.

Mark Cameron, chief operating officer at Astbury Marsden, said: "Optimism is high and an increase on contract hires is an early indicator of recovery in the City jobs market - but there is a fly in the ointment.

"The financial performance of the big investment banks is still not robust enough for them to initiate the levels of hiring that you normally associate with new stock market highs.

"Banks have been badly burnt in the past hiring on a short-term bounce in business volumes and then having to go through costly lay-offs, so many are being prudent and putting off bigger hiring decisions."