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UK Companies May Have Cut 11,000 Jobs In Q2, Says Finance Survey

Firms in the United Kingdom may have eliminated an estimated...

Firms in the United Kingdom may have eliminated an estimated 11,000 finance jobs during the second quarter, with practically all of these job cuts happening at lending institutions, according to a survey recently conducted by the largest business lobbying group in Britain.

Bloomberg News reports that the deterioration in the finance sector was not in line with the expectations of market participants, as asset managers, lending institutions and insurers all forecast three months ago that they would add finance jobs during the quarter ending in June, according to the report prepared by the Confederation of British Industry (CBI).

The sentiment of market participants was undermined during the second quarter by worries about the financial solvency of Spanish banks and the threat of Greece leaving the euro zone. Ian McCafferty, chief economic adviser at the CBI, stated the sentiment of the firms participating in the report declined during the three-month period while their revenue and profits continued to increase, according to the news source.

"The investment banking and capital markets side of the industry is contracting," Julian Wakeham of PricewaterhouseCoopers LLP, which worked with the CBI to compile the report, told the media outlet.

Data provided by the Office for National Statistics indicated that the number of jobless claims rose in the United Kingdom in May.

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