According to the CEBR, the credit crunch could claim 57,000 jobs in the City altogether.
The news comes as the Confederation of British Industry (CBI) reports the worst of the quarterly falls in GDP are past and the recession is set to moderate in the second half of 2009. But the CBI also predicts economic growth will not resume until spring 2010.
Richard Lambert, director-general of the CBI, said: ??"The UK economy remains deeply troubled, and the first quarter of this year has been tougher than expected. Firms have been running down their stocks of completed goods, and that is having a real impact on output, jobs and investment. Anxious consumers are spending less and building a savings buffer.
"In these turbulent times it is difficult to build a clear picture of how the economy will perform, but there are a few tentative signs that the steepest phase of the recession is now behind us, and that the banking packages, aggressive monetary policy and fiscal support will steady the pace of decline from here on. The recession is by no means over, but we see a return to very weak growth by spring 2010.
"Given falling tax revenues, the shrinking economy, and alarming levels of government debt, we urge the chancellor to avoid any further major fiscal boosts in the Budget. Budget measures should be targeted on jobs and investment, with a focus on efficiency savings and public-service reform."
Despite CBI predictions recession is set to moderate CEBR forecasts 29,000 City job losses this year
Almost 29,000 finance jobs could be axed in the City this year as the Centre for Economics and Business Research (CEBR) predicts job losses in the UK numbering 34,000.
