Good times could be over for City workers, and that includes

Accountants could lose jobs in a ‘ripple effect’ as City businesses cut almost 10,000 staff over the next two years, according to the author of a new report.

A study by the Centre for Economics and Business Research estimates the knock-on effects of the falling stock market combined with consolidation activity will mean 9,900 jobs lost.

CEBR managing consultant Kevin McCauley said: ‘The likes of fund managers and brokers will feel the impact first.’

But he added: ‘There’s going to be a ripple affect throughout the whole City.’

Although the CEBR expects the economy to weaken in the second half of this year, it says the dropping job numbers ‘should be seen as predicting a mild setback after a strong boom, rather than doom and gloom’.

Some City workers, such as those above celebrating at the end of last year, could still find their bonuses cut.

Steve Carter, UK managing director of recruitment consultant Robert Half, agreed: ‘The City is most exposed if there is an economic downturn. However, City firms may be trimming some staff but they are still recruiting.’