Slump could hit 28,000 Leeds jobs

Leeds is the second largest financial services centre outside London

Leeds could lose up to 28,000 jobs - or 6% of its total workforce - over the next three years as the recession takes its toll, a report has warned.

Between 11,500 and 28,000 job could go by the end of 2011 depending on the severity of the downturn, said research unit Centre for Cities.

About one third of those cuts would hit the city's financial services sector.

However, civic leaders in Leeds said the report was "unduly pessimistic" and the city could "ride out the storm".

Andrew Carter, the joint leader of Leeds City Council, admitted some job losses were inevitable, but stressed the medium and long-term outlook for the city was more optimistic.

He said 51,000 extra jobs had been created in Leeds since 1998 and forecasts suggested 25,000 more jobs would be created over the next 10 years.

No city will be immune from this recession Dermot Finch, Centre for Cities director

He also pointed to the importance of continuing infrastructure projects, including a new arena project scheduled for the city centre.

"The main drivers for a successful economy are a skilled workforce, competitive and innovative businesses and a quality place to work from," he said.

"So the council is still investing in infrastructure like the proposed arena, and education for example, to make sure Leeds is in the best possible position when the economy begins to recover.

"The city's strength is the diversity of the firms and organisations which make up the economy here and I'm confident we can ride out this current economic storm."

Dermot Finch, director of Centre for Cities said: "No city will be immune from this recession.

"Even our most successful cities, like Leeds, are set to lose around 5% of their jobs over the next three years - in financial services, retail and manufacturing.

"Leeds should work hard to retain its financial services niche."