City recruiters are poised to benefit from a major hiring drive among employers in the finance and business services sectors as firms’ confidence in the economy soars.

Companies are reporting their highest levels of optimism since 1998, according to the Manpower Employment Outlook Survey for the fourth quarter of this year.

Manpower director Hazel Detsiny claimed confidence was growing in the City “where 23% of employers are looking to increase their headcount”.

However, in London as a whole, a net 8% of firms are planning to up their staffing levels over the next three months, the survey found.

Overall, only 2% of the 2,500 UK employers surveyed are planning to reduce staff, with 18% looking to increase their workforce. The UK showed the most positive outlook compared with the rest of Europe, said the survey.