According to The Bank of England, the City of London could lose up to 10,000 jobs on “day one” of Brexit.
The Bank of England has estimated 75,000 jobs could be lost long-term in a “reasonable scenario”. A more accurate estimate depends on the UK’s post-Brexit trading deal.
Deputy governor of the Bank, Sam Woods, has asked 400 banks of their plans following the UK’s departure from the EU. Job losses are assuming that the UK leaves without a trade deal.
Woods has called on the government to finalise a transition deal by Christmas. This will clarify the current uncertainty surrounding Brexit and reduce risks as firms change their business models in order to continue their access to the remaining 27 EU countries.
The figures that have been suggested greatly vary. Xavier Rolet, the chief executive of the London Stock Exchange, has said he believes that as many as 200,000 could leave the UK for the continent.
The Bank of England believes this figure is above and beyond anything expected and are more likely to suggest numbers suggested by Oliver Wyman’s 2016 study.
The report predicts a loss of between 65,000 and 75,000 jobs.
The report predicts that up to 40,000 jobs could be lost from financial services. The remaining jobs in question are associated activities such as legal work.
Oliver Wyman also suggests that Brexit will lead to many opportunities. This includes the development bespoke financial services for emerging market economies across the Middle East and Asia.
Goldman Sachs (NYSE:GS) has already started on its Brexit contingency place. The firm is taking the top eight floors of a block in Frankfurt. This is despite the fact it is building its European headquarters in London.
JP Morgan initially said it would move 4,000 jobs. Since the referendum has cut that number to around 1,000.