City employment |
City population |
Number of businesses operating in the
City | Gender analysis of
employees in the City | Nationality
of the City workforce | The
City's contribution to the UK economy |
International trade in financial
services | Employment in financial
services across the UK | The
contribution to tax revenues in the UK |
The City as an international
banking centre | Payments clearing
system in the UK | Foreign
ownership in the financial sector |
Foreign exchange business |
Stock exchange equity business |
Eurobond trading |
Financial derivitives |
Exchange traded derivatives |
Asset management |
Insurance business |
Shadow banking |
Regulation of Financial sector
firms | Charitable giving by City
businesses | Trading between businesses
in the City fringes and firms in the City |
Key facts about the City of London |
The City of London produces a number of
quarterly periodicals | The City
prospectus - The City's local economic assesment
City Employment
The large number of people who come to work each day in the City
– mainly to work in finance and business services – contrasts with
the relatively small number of residents actually living in the
City. The numbers employed in Canary Wharf, which is home to
a number of key financial institutions, also fell slightly.
| Employment Market |
2009 |
2008 |
| City of London - all sectors |
316,700 |
328,100 |
| Canary Wharf - all sectors |
105,000 |
109,900 |
|
Financial services in Greater London |
315,200 |
349,200 |
|
Financial services in Great Britain |
1,034,600 |
1,111,500 |
Source: ONS Business Register and Employment Survey,
December 2010
For more detailed information, see City of London publication
City Statshot –
Employment Trends in the City, December
2010 (64kb)
For an analysis of current trends in the City’s employment
market on a monthly basis, see Morgan McKinley’s London Employment
Monitor: http://www.morganmckinley.com
City Population
By contrast with the City workforce, the number of residents
actually living in the City of London is very small, even though
numbers have been rising in recent years.
| Gender |
City of London |
London |
UK |
| Total |
11,500 |
7,668,300 |
61,792,000 |
| Males |
6,300 |
3,851,200 |
30,374,000 |
| Females |
5,200 |
3,902,400 |
31,417,900 |
Source; Office for National Statistics, 2009 Mid-Year
Population Estimates
The mid-year population estimate for the City of London in 2005 was
8,700.
Number
of businesses operating in the City
Whilst the head offices of most of the country’s leading
financial institutions are located in the City, it also has in
addition attracted a large number of foreign firms which operate in
financial markets. There are also many small and medium-sized
firms operating in the City.
| Total number of City Enterprises |
Enterprises with less than 10 employees |
Total finance and insurance
enterprises |
| 12,755 |
10,280 |
3,095 |
Sources: Office for National Statistics, Business Register
and Employment Survey, December 2010, and the Financial Services
Authority, December 2010
For more detailed information, see City of London publication
City Statshot –
City of London Enterprises, January
2011 (112k)
Gender
analysis of employees in the City
Although there are nearly as many women in the UK labour force
as there are men, in the City there are many more men than women
working in its key sectors.
| Area |
Male |
Female |
| City of London |
178,582 |
133,249 |
| Greater London |
2,168,288 |
2,000,239 |
| Great Britain |
13,504,363 |
13,172,834 |
Source: Office for National Statistics, Annual Business
Inquiry, December 2009
For more detailed information, see City of London publication
City Statshot –
Employment by Gender, July
2010 (59kb)
Nationality of the
City workforce
There is no official source of data available. However the
Census conducted every ten years does produce ethnicity data on a
workplace basis which is available from
http://www.statistics.gov.uk
The
City's contribution to the UK economy
The City of London’s contribution to the national income is
estimated at 2.4% of the total, while financial services represent
19.5% of total national income (or gross value added) in the whole
of London. The financial services sector accounts for 10% of
the total national income of Great
Britain.
Source: Office for National Statistics and Oxford
Economics
See also Oxford Economics' calculations of the
contribution of financial and professional
business services to GVA (202k) in the City, Greater
London and the UK
International trade in financial
services
The financial services sector makes an important contribution to
the UK’s balance of
payments, with the overall surplus in financial services reaching
£40.2bn in 2009. Total exports of the services sector as a
whole amounted to £170.8bn, giving a surplus on the services
balance of
£55.4bn.
Sources: Office for National Statistics, UK Balance
of Payments Pink Book 2010, and the
CityUK’s publication UK Financial Sector Net Exports
2010.
For more detailed information, see City of London publication
City Statshot –
Financial Services and UK Invisible Trade,
November 2010 (120kb)
Employment in
financial services across the UK
Just over one million people currently work in the financial
services sector in the UK, with approximately one-third of that
total employed in the financial services sector in London.
The rest of the employment in the sector is spread across the UK,
reflecting local business needs. Other key financial centres
include Edinburgh and Leeds, both with more than 30,000 financial
services employees, and Manchester, Glasgow and Birmingham, each
with around 25,000 in the industry.
Source: Office for National Statistics, Business
Register and Employment Survey, December 2010
For more detailed information, see City of London publication
City Statshot –
Geography of employment in financial services in
the UK, October 2010 (71k)
The contribution
to tax revenues in the UK
The financial services sector as a whole made a total tax
contribution of £53.4bn in 2009/10, representing 11.2% of total
government tax receipts. This figure includes taxes paid, as
well as taxes collected, by the sector. For London as a
whole, the net contribution to the exchequer is estimated at £1.4bn
in 2009/10 – below that achieved in earlier years as a result of
the recession. Forecasts suggest that over the medium term
London’s net contribution should return to the levels seen prior to
the financial crisis.
Sources: PwC and City of London,
Total Tax Contribution of UK Financial Services,
December 2010 (528k). Oxford
Economics and City of London,
London’s Competitive Place in the UK and Global
Economies, January
2011 (1140k)
The City as an international
banking centre
The City is the largest international banking centre in the
world, with banks in the UK accounting for over 20% of global
cross-border banking business. External lending by banks in
the UK to foreign companies and other entities amounted to over
$4.5 trillion in December 2010. Total banking assets in the
UK, at around £8 billion, are equivalent to more than five times
the country’s total GDP.
Most of the world’s largest banks have chosen to locate key
parts of their international business activities in
London. There are 241 foreign banks with branches or
subsidiaries in the UK, more than in any other country. The
assets of foreign-owned banks in the UK are almost as large as
those of the local UK-owned banks. The Financial Services
Authority maintains an
updated list of all the banks authorised to
do business in the UK.
According to a survey by the Association of Foreign Banks
published in Spring 2011, the wholesale operations of foreign banks
in the UK currently employ around 124,000 people, 40,000 of whom
have a foreign passport. Including their retail networks as
well, foreign banks employ more than 160,000 people
altogether.
Source: Bank for International Settlements, June
2010
Payments clearing system in the UK
Although a large proportion of transactions in the UK are still
made in cash and by cheque, a steadily increasing proportion takes
place electronically. As the use of cheques has declined,
payments by plastic card have continued to increase. The
clearing process is overseen by the Association for Payment
Clearing Services (APACS). Visit their website;
http://www.ukpayments.org.uk/
Customer use of payment instruments in the
UK
| % of total of transactions |
2005 |
2006 |
2007 |
2008 |
2009 |
| Credit transfers |
21.4 |
21.2 |
21.0 |
20.9 |
20.6 |
| Direct Debits |
19.6 |
19.8 |
19.9 |
20.2 |
19.8 |
| Cheques |
13.9 |
12.3 |
10.7 |
9.2 |
8.1 |
| Card payments |
45.1 |
46.6 |
48.4 |
49.8 |
51.5 |
Source: Bank for International Settlements ‘Red Book’,
March 2011
For more detailed information, see City of London publication
City Statshot – Payments and settlement
systems
Foreign
ownership in the financial sector
There are currently 1,117 firms in the financial services sector
that are majority foreign owned. Although 78 countries are
represented in the UK finance industry, the majority of these firms
are based in the USA. Other important foreign interests in
the UK financial services sector are from other European countries
and increasingly from Asian countries.
| Country |
No. of foreign owned financial
services companies in the UK |
| USA |
548 |
| Switzerland |
67 |
| Germany |
57 |
| France |
53 |
| Japan |
42 |
Source:
IMAS
Foreign
exchange business
The 2010 survey of currency trading conducted by the Bank for
International Settlements shows that total turnover on markets
worldwide has now reached $4.0 trillion a day. Foreign
exchange turnover in the UK reached more than $1.9 trillion on a
daily basis, accounting for 36.7% of this global total. In
second place came the USA with a 17.9% share in turnover on world
currency
markets.
| Country |
Daily Turnover |
Share of Total |
| United Kingdom |
$1,853.6bn |
36.7% |
| United States |
$904.4bn |
17.9% |
| Japan |
$312.3bn |
6.2% |
| Singapore |
$266bn |
5.3% |
| Switzerland |
$262.2bn |
5.2% |
Source: Bank for International Settlements, April
2010
The Bank for International Settlements conducts its survey once
every three years. Central banks conduct their own surveys on
a more regular basis and these confirm the above results.
Foreign exchange surveys carried out by the Bank of England show
that average daily turnover on UK foreign exchange markets stood at
$1,821bn in October 2010, while the Federal Reserve’s figure for
the United States was $771.8bn.
Stock exchange
equity business
The London Stock Exchange currently has the fourth largest
domestic equity market capitalisation in the world, after exchanges
in the USA and Japan, but remains larger than those in other
European countries and in Hong Kong and Shanghai.
| Exchange |
US$ billion |
| NYSE Euronext |
11,794 |
| Tokyo Stock Exchange |
3,277 |
| NASDAQ OMX (US) |
3,165 |
| London Stock Exchange |
2,407 |
| NYSE Euronext (Europe) |
2,295 |
Source: World Federation of Exchanges, June
2010
Eurobond trading
London is the most active centre in the world when it comes to
trading in Eurobonds, which are denominated in a number of
currencies, but mainly in US dollars and euros. New eurobonds
and medium-term notes issued in London during 2010 were equivalent
to £416.6bn, of which most were listed on the international market
by foreign
entities.
Source: London Stock Exchange
Financial derivatives
The 2010 survey from the Bank for International Settlements also
provides data on the worldwide market in financial
derivatives. Average daily turnover in interest rate
derivatives has reached almost $2.7 trillion on a global
basis. The UK has the largest financial derivatives market,
with an average daily turnover in interest rate derivatives of just
over $1.4 trillion – equivalent to 45.8% of the total.
| Interest rate derivative markets |
Daily turnover |
Share of total |
| United Kingdom |
$123,4.9bn |
45.8% |
| United States |
$641.8bn |
23.8% |
| France |
$193.3bn |
7.2% |
| Japan |
$89.9bn |
3.3% |
| Germany |
$48.5bn |
1.8% |
Source: Bank for International Settlements, April
2010
Exchange traded
derivatives
The London International Financial Futures and Options Exchange
(LIFFE), now part of NYSE Euronext, is one of the largest financial
futures exchanges in the world. Originally handling just
financial futures transactions, such as interest rates, it has
extended its range to cover futures trading in commodities as
well. In 2010 daily average transactions reached 2.8m by
volume in 2010 and €1.27 trillion by value.
Source: NYSE Euronext
Asset
management
The UK has the largest asset management business in Europe,
accounting for just under a third of the entire market calculated
on a net asset basis. As many as 24,000 people are employed
in the UK’s asset management business.
|
Asset management markets |
Total assets under management |
Share of Total |
| United Kingdom |
€3,181bn |
29.5% |
| France |
€2,554bn |
23.7% |
| Germany |
€1,327bn |
12.3% |
| Italy |
€562bn |
5.2% |
Source: European Fund and Asset Management Association,
2010
Figures published by the Investment Management Association place
the figure for funds under management in the UK rather higher, at
£3.9 trillion.
Insurance business
The insurance industry in the UK is the largest in Europe and
the third largest in the world. According to the Association
of British Insurers it accounts for 8% of total worldwide premium
income. It also employs an estimated 275,000 people, or
approximately a quarter of all financial services jobs.
Lloyd’s of London is the world’s leading insurance market, and has
the capacity to insure complex and specialist risks. It
provides insurance to many of the world’s largest companies.
Sources: Association of British Insurers, UK Insurance –
Key Facts, September 2010, and Lloyd’s Key Facts 2010
Shadow
banking
Shadow banking is the term used to describe the activities of
firms in the financial services sector but not operating as
traditional banks. This includes hedge funds, money market
funds, commodity funds, private equity groups and securitised
investment vehicles. According to data published by the Federal
Reserve in the USA, the global balance sheet of the shadow banking
sector is now larger than that of the traditional banks.
Regulation and
financial sector firms
All firms that provide financial services to customers in the UK
must be registered with the Financial Services Authority, as must
members of staff holding senior management positions and advising
customers. The FSA currently regulates approximately 29,000
firms and 165,000 individuals. Trends in the registration of
firms and individuals in the financial services sector with the FSA
is monitored on a quarterly basis by IMAS.
IMAS Publications
Charitable giving by
City businesses
The financial and professional business services sector in total
give an average of £505 million to community causes per year.
Source:
The Impact of City Businesses in Addressing
Social Disadvantage (323k) (Oxford Economics) - City of
London publication, November 2010
Trading between businesses
in the City fringes and firms in the City
It is estimated that firms in the City of London procure £13.3
billion of goods and services per annum from suppliers, and it is
estimated that 16% of the turnover of the average SME (small/medium
sized enterprise) in the City fringes will come from sales to firms
in the City of London. Meanwhile, approximately 4 - 5% of the
procurement needs of City of London firms by value are met by
suppliers based in the City fringes.
Source:
The City of London’s Supply Chain and its
Relationship with the City Fringes (778k)
(CEBR) - City of London publication, September 2008
Key facts about the City
of London
- $1.9tr foreign exchange turnover each day in London. 37% global
share, including foreign exchange derivatives (Source: Bank for
International Settlements)
- 19% of the global foreign equity market traded in London
(TheCityUK)
- 70% of global eurobond turnover traded in London
(TheCityUK)
- £200bn net premium insurance income in the UK (TheCityUK)
- 120.3m metal contracts a year traded in London, with average
daily turnover of $46bn (London Metal Exchange)
- 1.293bn contracts a year traded on London's International
Financial Futures Exchange (NYSE Liffe)
- £4.1tr in funds under management in the UK (Investment
Management Association)
- £35.7bn trade surplus generated by the UK financial services
sector (TheCityUK)
- 46% share of 'over the counter' derivatives market (Bank for
International Settlements)
- 95% share of the EU emissions trading scheme (TheCityUK)
- 604 foreign companies listed on the London Stock Exchange,
including the AIM market (London Stock Exchange)
- 241 foreign banks in London (TheCityUK)
- 18% of cross-border lending arranged in the UK - more than any
other country (TheCityUK)
- 19% share of global hedge fund assets in the UK (TheCityUK)
Leading western centre for Islamic finance, with 22 banks supplying
Islamic financial services, five fully Sharia compliant
(TheCityUK)
- 21% share in 2009 of global market in marine insurance, making
the UK the world leader (TheCityUK)
The City of London
produces a number of quarterly periodicals:
City Economy Digest - Key macroeconomic
indicators (both official and survey data), placing the financial
and related business services sector in its context within the
overall UK economy. It provides estimates of actual and forecast
levels of economic activity in the City of London, aided by
research from the consultancy Oxford Economics. Download copies of
the
City Economy Digest.
City Business Review - City Business Review
complements City Economy Digest. It provides a broad overview of
recent earnings announcements and developments by major financial
and related business services firms present in London. Its primary
focus is on banks, given their importance and regular,
highly-detailed reporting of results. All major sub-sectors –
insurance, legal services, accountancy, management consultancy,
fund management, maritime services and financial market
infrastructure – are covered, however, usually on an annual basis.
Download copies of the
City Business Review.
City Statshot – City Statshot provides a brief
analysis of key topical issues affecting the City, including
business and employment trends, based on a wide range of
statistical sources. Download copies of the
City Statshot.
If you would like to receive copies of our regular periodicals
via email, please contact us at
economic.research@cityoflondon.gov.uk.
The City Prospectus -
the City's Local Economic Assessment
Local authorities have a statutory duty to prepare a Local
Economic Assessment (LEA) for their area to ensure that they have
an understanding of how economic conditions and forces shape local
areas and to inform policies, priorities and the allocation of
resources. The City Corporation has prepared a draft Local
Economic Assessment for the City of London – entitled
‘The City Prospectus’ (1mb). This brings together in one
document an assessment of the economic, environmental and
population characteristics of the City of London (relative to
Central London) as at summer 2010. A number of key challenges
for the City are also drawn out.