The number of jobs available in the private sector in London has increased over the last 12 months, according to a new report.
Some 19,200 more jobs were available in the private sector during June this year than in the same month in 2010 an increase of 0.5 per cent, said research group Centre for Cities (CfC).
There has also been a rise in the number of public sector positions available, with 8,900 more roles up for grabs in June this year compared to last year’s figures. However, many regions of the UK have experienced a fall in the number of public sector jobs available due to cutbacks.
CfC analyst Paul Swinney believes the capital’s private sector is well equipped to deal with the impact on public sector jobs.
Swinney said: “The performance of the private sector in London between 1998 and 2008 has created around 300,000 jobs. We expect the trend to continue because the private sector is stronger in the capital than other UK cities.”
He continued: “We did some work in January looking at the impact of the public sector job cuts and job losses.
“London will see the largest number of cuts to jobs in the public sector, around 50,000 will go, but compared to the total number of jobs in London that’s a small percentage. In comparison, Newport and Swansea will lose about 3,000 jobs but with a smaller economy it is obviously a bigger impact.”
Swinney said the capital is well set up to encourage further growth in the private sector. London Underground provides access to a high number of skilled workers over a large area, while businesses will also be encouraged by the number of graduates in the area, he said.
“London is an international business centre and can attract businesses from all over the world. The recovery is London led and we expect that to continue,” said Swinney.
Although the financial services industry is important to London’s economy, Swinney believes there is a good enough mixture of businesses to deal with turbulent economic times.
“One of London’s key advantages over other cities is its diversity, it’s a fantastic business destination for all types of business,” said Swinney. “People look to the financial services sector, but it’s important that London is not reliant on the financial industry. There’s a breadth of industries and that’s a strength, it means it is not vulnerable to a dip in any of the industries.”