Concerns over a double-dip recession has caused an 18% drop in City job vacancies, according to research by financial services recruitment firm Astbury Marsden.

The firm’s research shows that the number of new City job vacancies created in June was 5,100, down from May’s 6,238.

Mark Cameron, chief operating officer at Astbury Marsden, says: “Worries over the European banking sector have taken the froth off the jobs market.”

“There is still an awful lot of hiring going on, it is just that the pace has changed down one gear, which will keep wages from overheating. That is good news for the industry as it is a lot more sustainable.”