The number of new City jobs on offer fell by a third in 2012, according to financial services recruitment firm Astbury Marsden.

Cost cutting and more stringent regulations have been blamed for the fall.

Astbury said around 35,115 new City jobs were created last year, compared to about 54,025 in 2011.

It added that there were only around 800 new City jobs available in December, compared to 1,490 in the previous year.

"Tighter regulation including higher capital requirements forced up costs at a time when revenues dipped due to a number of factors including a continued weak economy and less trading activity," said Mark Cameron, the company's Chief Operating Officer.

"Although broad cost cutting is fairly typical in the City during a downturn, 2012 was particularly significant as senior management in banks took very decisive action and implemented major structural changes including winding down entire units."

He added that hopefully the City had seen the worst of the cuts.

"Although banks may still tinker with staffing numbers, most of the obvious and immediate cuts are likely to have now been made," he said.

His firm was upbeat about the year ahead, saying improvements in the Eurozone since the autumn could improve hiring confidence in 2013.

"Some of the dark clouds around the Euro - which has been a major concern in the City for the last eighteen months - seem to have lifted which will encourage some firms who are contemplating hiring staff," Cameron said.

"Whilst the closure in the US budget battle is still to come, markets have responded well to progress already made there.

"For the world's largest economy, which is so important in setting trends globally, 2013 has certainly started on a more positive note than 2012 ended, which could help mitigate the gloomy outlook around hiring," he said.

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