An extra 35,000 new jobs will be created in the City of London as international financial institutions launch a hiring drive in the square mile and Canary Wharf, according to a report by the Centre for Economics and Business Research.

The centre anticipates that employment in the City will rise by 8,000, or 2.6%, in 2004 and by a further 7,000 in the subsequent 12 months.

Richard Milne, from Robert Half Finance and Accounting, says there is a massive recruitment drive in the City. “A lot of my clients predict that it could be a two or three-year boom period. On the credit and derivatives side, we are seeing a lot of movement.”

The securities dealing sector will have the overall highest rate of employment growth, at above 3% in 2004-2007, and slightly below 3% in 2008. Employment in securities is expected to increase by 13,000 over the next four years, the report claims.